THE ARBITRATION AND CONCILIATION ACT, 1996 
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ARRANGEMENT OF SECTIONS 

Last update-12-3-2021 
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PRELIMINARY 

PREAMBLE 

SECTIONS 

1.  Short title, extent and commencement. 

PART I 
ARBITRATION 
CHAPTER I 
General provisions 

2.  Definitions. 
3.  Receipt of written communications. 
4.  Waiver of right to object. 
5.  Extent of judicial intervention. 
6.  Administrative assistance. 

CHAPTER II 
Arbitration agreement 

7.  Arbitration agreement. 
8.  Power to refer parties to arbitration where there is an arbitration agreement. 
9.  Interim measures, etc., by Court. 

CHAPTER III 
Composition of arbitral tribunal 

10.  Number of arbitrators. 
11.  Appointment of arbitrators. 
11A. Power of Central Government to amend Fourth Schedule. 
12.  Grounds for challenge. 
13.  Challenge procedure. 
14.  Failure or impossibility to act. 
15.  Termination of mandate and substitution of arbitrator. 

CHAPTER IV 
Jurisdiction of arbitral tribunals 

16.  Competence of arbitral tribunal to rule on its jurisdiction. 
17.  Interim measures ordered by arbitral tribunal. 

CHAPTER V 
Conduct of arbitral proceedings 

18.  Equal treatment of parties. 
19.  Determination of rules of procedure. 
20.  Place of arbitration. 

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SECTIONS 

21.  Commencement of arbitral proceedings. 
22.  Language. 
23.  Statements of claim and defence. 
24.  Hearings and written proceedings. 
25.  Default of a party. 
26.  Expert appointed by arbitral tribunal. 
27.  Court assistance in taking evidence. 

CHAPTER VI 
Making of arbitral award and termination of proceedings 

28.  Rules applicable to substance of dispute. 
29.  Decision making by panel of arbitrators. 
29A.Time limit for arbitral award. 
29B. Fast track procedure. 
30.  Settlement. 
31.  Form and contents of arbitral award. 
31A. Regime for costs. 
32.  Termination of proceedings. 
33.  Correction and interpretation of award; additional award. 

CHAPTER VII 
Recourse against arbitral award 

34.  Application for setting aside arbitral awards. 

CHAPTER VIII 
Finality and enforcement of arbitral awards 

35.  Finality of arbitral awards. 
36.  Enforcement. 

37.  Appealable orders. 

CHAPTER IX 
Appeals 

CHAPTER X 
Miscellaneous 

38.  Deposits. 
39.  Lien on arbitral award and deposits as to costs. 
40.  Arbitration agreement not to be discharged by death of party thereto. 
41.  Provisions in case of insolvency. 
42.  Jurisdiction. 
42A. Confidentiality of information. 
42B.  Protection of action taken in good faith. 
43.  Limitations. 

PART II 
ENFORCEMENT OF CERTAIN FOREIGN AWARDS 
CHAPTER I 
New York Convention Awards 

44.  Definition. 

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SECTIONS 

45.  Power of judicial authority to refer parties to arbitration. 
46.  When foreign award binding. 
47.  Evidence. 
48.  Conditions for enforcement of foreign awards. 
49.  Enforcement of foreign awards. 
50.  Appealable orders. 
51.  Saving. 
52.  Chapter II not to apply. 

CHAPTER II 
Geneva Convention Awards 

53.  Interpretation. 
54.  Power of judicial authority to refer parties to arbitration. 
55.  Foreign awards when binding. 
56.  Evidence. 
57.  Conditions for enforcement of foreign awards. 
58.  Enforcement of foreign awards. 
59.  Appealable orders. 
60.  Savings. 

PART III 

CONCILIATION 

61.  Application and scope. 
62.  Commencement of conciliation proceedings. 
63.  Number of conciliators. 
64.  Appointment of conciliators. 
65.  Submission of statements to conciliator. 
66.  Conciliator not bound by certain enactments. 
67.  Role of conciliator. 
68.  Administrative assistance. 
69.  Communication between conciliator and parties. 
70.  Disclosure of information. 
71.  Co-operation of parties with conciliator. 
72.  Suggestions by parties for settlement of dispute. 
73.  Settlement agreement. 
74.  Status and effect of settlement agreement. 
75.  Confidentiality. 
76.  Termination of conciliation proceedings. 
77.  Resort to arbitral or judicial proceedings. 
78.  Costs. 
79.  Deposits. 
80.  Role of conciliator in other proceedings. 
81.  Admissibility of evidence in other proceedings. 

PART IV 

SUPPLEMENTARY PROVISIONS 

82.  Power of High Court to make rules. 
83.  Removal of difficulties. 

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SECTIONS 

84.  Power to make rules. 
85.  Repeal and savings. 
86.  Repeal and saving. 
87.  Effect of arbitral and related court proceedings commenced prior to 23rd October, 2015. 

THE FIRST SCHEDULE. 
THE SECOND SCHEDULE. 
THE THIRD SCHEDULE. 
THE FOURTH SCHEDULE. 
THE FIFTH SCHEDULE. 
THE SIXTH SCHEDULE. 
THE SEVENTH SCHEDULE. 
APPENDIX. 

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THE ARBITRATION AND CONCILIATION ACT, 1996 

ACT No. 26 OF 1996 

[16th August, 1996.] 

An  Act  to  consolidate  and  amend  the  law  relating  to  domestic  arbitration,  international 
commercial arbitration and enforcement of foreign arbitral awards as also to define the law 
relating to conciliation and for matters connected therewith or incidental thereto. 

Preamble.—WHEREAS  the  United  Nations  Commission  on  International  Trade  Law  (UNCITRAL) 

has adopted the UNCITRAL Model Law on International Commercial Arbitration in 1985; 

ANDWHEREAS the General Assembly of the United Nations has recommended that all countries give 
due consideration to the said Model Law, in view of the desirability of uniformity of the law of arbitral 
procedures and the specific needs of international commercial arbitration practice; 

ANDWHEREAS the UNCITRAL has adopted the UNCITRAL Conciliation Rules in 1980; 

ANDWHEREAS  the  General  Assembly  of  the  United  Nations  has  recommended  the  use  of  the  said 
Rules in cases where a dispute arises in the context of international commercial relations and the parties 
seek an amicable settlement of that dispute by recourse to conciliation; 

ANDWHEREAS the said Model Law and Rules make significant contribution to the establishment of a 
unified  legal  framework  for  the  fair  and  efficient  settlement  of  disputes  arising  in  international 
commercial relations; 

ANDWHEREAS it is expedient to make law respecting arbitration and conciliation, taking into account 

the aforesaid Model Law and Rules; 

BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:— 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Arbitration  and 

PRELIMINARY 

Conciliation Act, 1996. 

(2) It extends to the whole of India: 

1* 

* 

* 

* 

* 

(3)  It  shall  come  into  force  on  such  date2 as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

PART I 

ARBITRATION 

CHAPTER I 

General provisions 

2. Definitions.—(1) In this Part, unless the context otherwise requires,— 

(a)  “arbitration”  means  any  arbitration  whether  or  not  administered  by  permanent  arbitral 

institution; 

(b) “arbitration agreement” means an agreement referred to in section 7; 

1. The proviso and Explanation omitted by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, 
vide  notification  No.  S.O.  1123(E)  dated  (18-3-2020)  and  vide  Union  Territory  of  Ladakh  Reorganisation  (Adaptation  of 
Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020). 

2. 22nd August, 1996, vide notification No. G.S.R 375(E), dated 22nd August, 1996, see Gazette of India, Extraordinary, Part II, 

sec. 3(i).  

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(c) “arbitral award” includes an interim award; 

(d) “arbitral tribunal” means a sole arbitrator or a panel of arbitrators; 

1[(e) “Court” means— 

(i) in the case of an arbitration other than international commercial arbitration, the principal 
Civil  Court  of  original  jurisdiction  in  a  district,  and  includes  the  High  Court  in  exercise  of  its 
ordinary  original  civil  jurisdiction,  having  jurisdiction  to  decide  the  questions  forming  the 
subject-matter  of  the  arbitration  if the  same  had  been  the  subject-matter  of  a  suit,  but  does  not 
include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small 
Causes; 

(ii)  in  the  case  of  international  commercial  arbitration,  the  High  Court  in  exercise  of  its 
ordinary  original  civil  jurisdiction,  having  jurisdiction  to  decide  the  questions  forming  the 
subject-matter  of  the  arbitration  if  the  same  had  been  the  subject-matter  of  a  suit,  and  in  other 
cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that 
High Court;] 

(f) “international commercial arbitration” means an arbitration relating to disputes arising out of 
legal  relationships,  whether  contractual  or  not,  considered  as  commercial  under  the  law  in  force  in 
India and where at least one of the parties is— 

(i) an individual who is a national of, or habitually resident in, any country other than India; 

or 

(ii) a body corporate which is incorporated in any country other than India; or 

(iii) 2***  an  association  or  a  body  of  individuals  whose  central  management  and  control  is 

exercised in any country other than India; or 

(iv) the Government of a foreign country; 

(g) “legal representative” means a person who in law represents the estate of a deceased person, 
and includes any person who intermeddles with the estate of the deceased, and, where a party acts in a 
representative character, the person on whom the estate devolves on the death of the party so acting; 

(h) “party” means a party to an arbitration agreement. 

(2) This Part shall apply where the place of arbitration is in India: 

3[Provided that subject to an agreement to the contrary, the provisions of sections 9, 27 and clause (a) 
of  sub-section  (1)  and  sub-section  (3)  of  section37  shall  also  apply  to  international  commercial 
arbitration, even if the place of arbitration is outside India, and an arbitral award made or to be made in 
such place is enforceable and recognised under the provisions of Part II of this Act.] 

(3)  This  Part  shall  not  affect  any  other  law  for  the  time  being  in  force  by  virtue  of  which  certain 

disputes may not be submitted to arbitration. 

(4) This Part except sub-section (1) of section 40, sections 41 and 43 shall apply to every arbitration 
under any other enactment for the time being in force, as if the arbitration were pursuant to an arbitration 
agreement and as if that other enactment were an arbitration agreement, except in so far as the provisions 
of this Part are inconsistent with that other enactment or with any rules made thereunder. 

(5) Subject to the provisions of sub-section (4), and save in so far as is otherwise provided by any law 
for the time being in force or in any agreement in force between India and any other country or countries, 
this Part shall apply to all arbitrations and to all proceedings relating thereto. 

(6)  Where  this  Part,  except  section  28,  leaves  the  parties  free  to  determine  a  certain  issue,  that 
freedom shall include the right of the parties to authorise any person including an institution, to determine 
that issue. 

1. Subs. by Act 3 of 2016, s. 2, for clause (e) (w.e.f. 23-10-2015). 
2. The words “a company or” omitted by s. 2, ibid. (w.e.f. 23-10-2015). 
3. Ins. by s. 2, ibid. (w.e. f. 23-10-2015). 

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(7) An arbitral award made under this Part shall be considered as a domestic award. 

(8) Where this Part— 

(a) refers to the fact that the parties have agreed or that they may agree, or 

(b) in any other way refers to an agreement of the parties, 

that agreement shall include any arbitration rules referred to in that agreement. 

(9) Where this Part, other than clause (a) of section 25 or clause (a) of sub-section (2) of section 32, 
refers to a claim, it shall also apply to a counterclaim, and where it refers to a defence, it shall also apply 
to a defence to that counterclaim. 

3. Receipt of written communications.—(1) Unless otherwise agreed by the parties,— 

(a) any written communication is deemed to have been received if it is delivered to the addressee 

personally or at his place of business, habitual residence or mailing address, and 

(b) if none of the places referred to in clause (a) can be found after making a reasonable inquiry, a 
written  communication  is  deemed  to  have  been  received  if  it  is  sent  to  the  addressee's  last  known 
place  of  business,  habitual  residence  or  mailing  address  by  registered  letter  or  by  any  other  means 
which provides a record of the attempt to deliver it. 

(2) The communication is deemed to have been received on the day it is so delivered. 

(3) This section does not apply to written communications in respect of proceedings  of any judicial 

authority. 

4.Waiver of right to object.—A party who knows that— 

(a) any provision of this Part from which the parties may derogate, or 

(b) any requirement under the arbitration agreement, 

has  not  been  complied  with  and  yet  proceeds  with  the  arbitration  without  stating  his  objection  to  such 
non-compliance without undue delay or, if a time limit is provided for stating that objection, within that 
period of time, shall be deemed to have waived his right to so object. 

5.Extent  of  judicial  intervention.—Notwithstanding  anything  contained  in  any  other  law  for  the 
time being in force, in matters governed by this Part, no judicial authority shall intervene except where so 
provided in this Part. 

6.Administrative  assistance.—In  order  to  facilitate  the  conduct  of  the  arbitral  proceedings,  the 
parties, or the arbitral tribunal with the consent of the parties, may arrange for administrative assistance 
by a suitable institution or person. 

CHAPTER II 

Arbitration agreement 

7.  Arbitration  agreement.—(1)  In  this  Part,  “arbitration  agreement”  means  an  agreement  by  the 
parties to submit to arbitration all or certain disputes which have arisen or which may arise between them 
in respect of a defined legal relationship, whether contractual or not. 

(2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of 

a separate agreement. 

(3) An arbitration agreement shall be in writing. 

(4) An arbitration agreement is in writing if it is contained in— 

(a) a document signed by the parties; 

(b)  an  exchange  of  letters,  telex,  telegrams  or  other  means  of  telecommunication 1[including 

communication through electronic means] which provide a record of the agreement; or 

1. Ins. by Act 3 of 2016, s. 3 (w. e. f. 23-10-2015). 

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(c) an  exchange  of  statements  of  claim  and  defence in  which the  existence  of the  agreement is 

alleged by one party and not denied by the other. 

(5)  The  reference  in  a  contract  to  a  document  containing  an  arbitration  clause  constitutes  an 
arbitration  agreement  if  the  contract  is  in  writing  and  the  reference  is  such  as  to  make  that  arbitration 
clause part of the contract. 

8.Power to refer parties to arbitration where there is an arbitration agreement.—1[(1)A judicial 
authority, before which an action is brought in a matter which is the subject of an arbitration agreement 
shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not 
later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding 
any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it 
finds that prima facie no valid arbitration agreement exists.] 

(2) The application referred to in sub-section (1) shall not be entertained unless it is accompanied by 

the original arbitration agreement or a duly certified copy thereof: 

2[Provided  that  where  the  original  arbitration  agreement  or  a  certified  copy  thereof  is  not  available 
with  the  party  applying  for  reference  to  arbitration  under  sub-section  (1),  and  the  said  agreement  or 
certified copy is retained by the other party to that agreement, then, the party so applying shall file such 
application along with a copy of the arbitration agreement and a petition praying the Court to call upon 
the other party to produce the original arbitration agreement or its duly certified copy before that Court.] 

(3)  Notwithstanding  that  an  application  has  been  made  under  sub-section  (1)  and  that  the  issue  is 
pending  before  the  judicial  authority,  an  arbitration  may  be  commenced  or  continued  and  an  arbitral 
award made. 

Jammu and Kashmir and Ladakh (UTs).— 

STATE AMENDMENT 

Insertion of section 8A and section 8B.—After section 8, insert the following sections, namely:– 

“8A. Power  of the  court, seized of  petitions  under sections  9  or  11  of  the  Act,  to  refer  the 
dispute to Mediation or Conciliation.—(1) If during the pendency of petitions under sections 9 or 
11  of  the  Act,  it  appears  to  the  court,  that  there  exists  elements  of  a  settlement  which  may  be 
acceptable to the parties, the court may, with the consent of parties, refer the parties, for resolution of 
their disputes, to,-  

(a) mediation; or  

(b) conciliation. 

(2) The procedure for reference of a dispute to mediation is as under– 

(a) where a dispute has been referred for resolution by recourse to mediation, the procedure 

framed under that Act shall apply; 

(b) in case of a successful resolution of the dispute, the Mediator shall immediately forward 

the mediated settlement to the referral court; 

(c)  on  receipt  of  the  mediated  settlement,  the  referral  court  shall  independently  apply  its 
judicial mind and record a satisfaction that the mediated settlement is genuine, lawful, voluntary, 
entered  into  without  coercion,  undue  influence,  fraud  or  misrepresentation  and  that  there  is  no 
other legal impediment in accepting the same; 

(d)  the  court  shall  record  a  statement  on  oath  of  the  parties,  or  their  authorised 
representatives, affirming the mediated settlement as well as a clear undertaking of the parties to 
abide by the terms of the settlement; 

1. Subs. by Act 3 of 2016, s. 4, for sub-section (1) (w. e. f. 23-10-2015). 
2. Ins. by s. 4, ibid. (w.e.f. 23-10-2015). 

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(e) if satisfied, the court shall pass an order in terms of the settlement; 

(f) if the main petition, in which the reference was made is pending, it shall be disposed of by 

the referral court in terms thereof; 

(g)  if  the  main  petition,  in  which  the  reference  was  made  stands  disposed  of,  the  mediated 
settlement  and  the  matter  shall  be  listed  before  the  referral  court,  which  shall  pass  orders  in 
accordance with clauses (iii), (iv) and (v); 

(h) such a mediated settlement, shall have the same status and effect as an arbitral award and 

may be enforced in the manner specified under section 36 of the Act. 

(3) With respect to reference of a dispute to conciliation, the provisions of Part II of this Act shall 
apply as if the conciliation proceedings were initiated by the parties under the relevant provision of 
this Act. 

8B.  Power  of  the  court,  seized  of  matters  under  sections  34  or  37  of  the  Act,  to  refer  the 
dispute to Mediation or Conciliation.—(1) If during the pendency of a petition under section 34 or 
an appeal under section 37 of the Act, it appears to the court, that there exists elements of a settlement 
which may be acceptable to the parties, the court may, with the consent of parties, refer the parties, 
for resolution of their disputes, to:–  

(a) mediation; or 

 (b) conciliation. 

(2) The procedure for reference of a dispute to mediation is as under:- 

(a) where a dispute has been referred for resolution by recourse to mediation, the procedure 

framed under the Act shall apply; 

(b) in case of a successful resolution of the dispute, the Mediator shall immediately forward 

the mediated settlement to the referral court; 

(c)  on  receipt  of  the  mediated  settlement,  the  referral  court  shall  independently  apply  its 
judicial  mind  and  record  a  satisfaction  that  the  mediated  settlement  is  genuine,  lawful, 
voluntary, entered into without coercion, undue influence, fraud or misrepresentation and that 
there is no other legal impediment in accepting the same; 

(d)  the  court  shall  record  a  statement  on  oath  of  the  parties,  or  their  authorized 
representatives, affirming the mediated settlement, a clear undertaking of the parties to abide by 
the terms of the settlement as well as statement to the above effect; 

(e) if satisfied, the court shall pass an order in terms of the settlement; 

(f) if the main petition, in which the reference was made is pending, it shall be disposed of 

by the referral court in terms thereof; 

(g) if the main petition, in which the reference was made stands disposed of, the mediated 
settlement  and  the  matter  shall  be  listed  before  the  referral  court,  which  shall  pass  orders  in 
accordance with clauses (iii), (iv) and (v); 

(h) such a mediated settlement, shall have the status of a modified arbitral award and may 

be enforced in the manner specified under section 36 of the Act. 

(3)  With  respect  to  reference  of  a  dispute  to  conciliation,  the  provisions  of  Part  III  of  the  Act, 
shall apply as if the conciliation proceedings were initiated by the parties under the relevant provision 
of this Act.” 

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[Vide  the  Jammu  and  Kashmir  Reorganization  (Adaptation  of  Central  Laws)  Order,  2020,  notification 
No. S.O. 1123(E) dated (18-3-2020)  and Vide Union Territory of Ladakh Reorganisation (Adaptation of 
Central Laws) Order, 2020, notification No. S.O.3774(E), dated (23-10-2020).] 

9.Interim measures, etc., by Court.—1[(1)]A party may, before or during arbitral proceedings or at 
any time after the making of the arbitral award but before it is enforced in accordance with section 36, 
apply to a court— 

(i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of 

arbitral proceedings; or 

(ii) for an interim measure of protection in respect of any of the following matters, namely:— 

(a) the preservation, interim custody or sale of any goods which are the subject-matter of the 

arbitration agreement; 

(b) securing the amount in dispute in the arbitration; 

(c)  the  detention,  preservation  or  inspection  of  any  property  or  thing  which  is  the  subject-
matter of the dispute in arbitration, or as to which any question may arise therein and authorising 
for any of the aforesaid purposes any person to enter upon any land or building in the possession 
of any party, or authorising any samples to be taken or any observation to be made, or experiment 
to be tried, which may be necessary or expedient for the purpose of obtaining full information or 
evidence; 

(d) interim injunction or the appointment of a receiver; 

(e)  such  other  interim  measure  of  protection  as  may  appear  to  the  Court  to  be  just  and 

convenient, 

and the Court shall have the same power for making orders as it has for the purpose of, and in relation 
to, any proceedings before it. 
2[(2) Where, before the commencement of the arbitral proceedings, a Court passes an order for any 
interim measure of protection under sub-section (1), the arbitral proceedings shall be commenced within a 
period of ninety days from the date of such order or within such further time as the Court may determine. 

(3) Once the arbitral tribunal has been constituted, the Court shall not entertain an application under 
sub-section (1), unless the Court finds that circumstances exist which may not render the remedy provided 
under section 17 efficacious.] 

CHAPTER III 

Composition of arbitral tribunal 

10.  Number  of  arbitrators.—(1)  The  parties  are  free  to  determine  the  number  of  arbitrators, 

provided that such number shall not be an even number. 

(2) Failing the determination referred to in sub-section (1), the arbitral tribunal shall consist of a sole 

arbitrator. 

11.  Appointment  of  arbitrators.—(1)  A  person  of  any  nationality  may  be  an  arbitrator,  unless 

otherwise agreed by the parties. 

(2) Subject to sub-section (6), the parties are free to agree on a procedure for appointing the arbitrator 

or arbitrators. 

(3) Failing any agreement referred to in sub-section (2), in an arbitration with three arbitrators, each 
party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who 
shall act as the presiding arbitrator. 

(4) If the appointment procedure in sub-section (3) applies and— 

(a) a party fails to appoint an arbitrator within thirty days from the receipt of a request to do so 

from the other party; or 

1. Section 9 shall be renumbered as sub-section (1) thereof by s. 5, ibid. (w.e.f.  23-10-2015). 
2. Ins. by s. 5, ibid. (w.e.f. 23-10-2015). 

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(b) the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the 

date of their appointment, 

the appointment shall be made, upon request of a party, by 1[the Supreme Court or, as the case may be, 
the High Court or any person or institution designated by such Court]; 

(5) Failing any agreement referred to in sub-section (2), in an arbitration with a sole arbitrator, if the 
parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the 
other party to so agree the appointment shall be made, upon request of a party, by 1[the Supreme Court or, 
as the case may be, the High Court or any person or institution designated by such Court]. 

(6) Where, under an appointment procedure agreed upon by the parties,— 

(a) a party fails to act as required under that procedure; or 

(b) the parties, or the two appointed arbitrators, fail to reach an agreement expected of them under 

that procedure; or 

(c) a person, including an institution, fails to perform any function entrusted to him or it under 

that procedure, 

a  party  may  request  1[the  Supreme  Court  or,  as  the  case  may  be,  the  High  Court  or  any  person  or 
institution  designated  by  such  Court]to  take  the  necessary  measure,  unless  the  agreement  on  the 
appointment procedure provides other means for securing the appointment. 

2[(6A) The Supreme Court or, as the case may be, the High Court, while considering any application 
under sub-section (4) or sub-section (5) or sub-section (6), shall, notwithstanding any judgment, decree or 
order of any Court, confine to the examination of the existence of an arbitration agreement. 

(6B) The designation of any person or institution by the Supreme Court or, as the case may be, the 
High Court, for the purposes of this section shall not be regarded as a delegation of judicial power by the 
Supreme Court or the High Court.] 

(7) A decision on a matter entrusted by sub-section (4) or sub-section (5) or sub-section (6) to 3[the 
Supreme  Court  or,  as  the  case  may  be,  the  High  Court  or  the  person  or  institution  designated  by  such 
Court is final and no appeal including Letters Patent Appeal shall lie against such decision]. 

4[(8) The Supreme Court or, as the case may be, the High Court or the person or institution designated 
by  such  Court,  before  appointing  an  arbitrator,  shall  seek  a  disclosure  in  writing  from  the  prospective 
arbitrator in terms of  sub-section (1) of section 12, and have due regard to— 

(a) any qualifications required for the arbitrator by the agreement of the parties; and 

(b) the contents of the disclosure and other considerations as are likely to secure the appointment 

of an independent and impartial arbitrator.] 

(9)  In  the  case of appointment  of  sole  or  third  arbitrator  in  an  international  commercial arbitration, 
5[the Supreme Court or the person or institution designated by that Court] may appoint an arbitrator of a 
nationality other than the nationalities of the parties where the parties belong to different nationalities. 

6[(10)The Supreme Court or, as the case may be, the High Court, may make such scheme as the said 
Court may deem appropriate for dealing with matters entrusted by sub-section (4) or sub-section (5) or 
sub-section (6), to it.] 

(11)  Where  more  than  one  request  has  been  made  under  sub-section  (4)  or  sub-section  (5)  or  sub-
section  (6) to the  Chief Justices  of  different  High  Courts  or  their  designates, 7[different  High  Courts  or 

1. Subs. by Act 3 of 2016, s. 6, for “the Chief Justice or any person or institution designated by him” (w. e. f. 23-10-2015). 
2. Ins. by s. 6, ibid. (w.e.f. 23-10-2015). 
3. Subs. by s. 6, ibid., for “the Chief Justice or the person  or institution designated by him is final” (w.e.f. 23-10-2015). 
4. Subs. by Act 3 of 2016, s. 6, for sub-section (8) (w.e.f.23-10-2015). 
5. Subs. by s. 6, ibid., for “the Chief Justice of India of India or the person or institution designated by him” (w.e.f. 23-10-2015). 
6. Subs. by s. 6, ibid., for sub-section (10) (w.e.f. 23-10-2015). 
7. Subs. by s. 6, ibid., for “the Chief Justices of different High Courts or their designates, the Chief Justice or his designate to 

whom the request has been first made” (w.e.f 23-10-2015). 

11 

 
                                                           
 
their  designates,  the  High  Court  or  its  designate  to  whom  the  request  has  been  first  made]  under  the 
relevant sub-section shall alone be competent to decide on the request. 

1[(12) (a) Where the matters referred to in sub-sections (4), (5), (6), (7), (8) and sub-section (10) arise 
in an international commercial arbitration, the reference to the “Supreme Court or, as the case may be, the 
High Court” in those sub-sections shall be construed as a reference to the “Supreme Court”; and 

(b) Where the matters referred to in sub-sections (4), (5), (6), (7), (8) and sub-section (10) arise in any 
other arbitration, the reference to “the Supreme Court or, as the case may be, the High Court” in those 
sub-sections shall be construed as a reference to the “High Court” within whose local limits the principal 
Civil Court referred to in clause (e) of sub-section (1) of section 2 is situate, and where the High Court 
itself is the Court referred to in that clause, to that High Court.] 

2[(13) An application made under this section for appointment of an arbitrator or arbitrators shall be 
disposed of by the Supreme Court or the High Court or the person or institution designated by such Court, 
as the case maybe, as expeditiously as possible and an endeavour shall be made to dispose of the matter 
within a period of sixty days from the date of service of notice on the opposite party.  

(14)  For  the  purpose  of  determination  of  the  fees  of  the  arbitral  tribunal  and  the  manner  of  its 
payment to the arbitral tribunal, the High Court may frame such rules as may be necessary, after taking 
into consideration the rates specified in the Fourth Schedule. 

Explanation.—For the removal of doubts, it is hereby clarified that this sub-section shall not apply to 
international commercial arbitration and in arbitrations (other than international commercial arbitration) 
in case where parties have agreed for determination of fees as per the rules of an arbitral institution.] 

3[11A. Power of Central Government to amend Fourth Schedule.—(1) If the Central Government 
is satisfied that it is necessary or expedient so to do, it may, by notification in the Official Gazette, amend 
the  Fourth  Schedule  and  thereupon  the  Fourth  Schedule  shall  be  deemed  to  have  been  amended 
accordingly. 

(2)  A  copy  of  every  notification  proposed  to  be  issued  under  sub-section  (1),  shall  be  laid  in  draft 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
disapproving  the  issue  of  the  notification  or  both  Houses  agree  in  making  any  modification  in  the 
notification,  the  notification  shall  not  be  issued  or,  as  the  case  may  be,  shall  be  issued  only  in  such 
modified form as may be agreed upon by the both Houses of Parliament.] 

12.Grounds  for  challenge.—4[(1)  When  a  person  is  approached  in  connection  with  his  possible 

appointment as an arbitrator, he shall disclose in writing any circumstances,— 

(a)  such  as  the  existence  either  direct  or  indirect,  of  any  past  or  present  relationship  with  or 
interest in any of the parties or in relation to the subject-matter in dispute, whether financial, business, 
professional or other kind, which is likely to give rise to justifiable doubts as to his independence or 
impartiality; and 

(b)  which  are  likely  to  affect  his  ability  to  devote  sufficient  time  to  the  arbitration  and  in 

particular his ability to complete the entire arbitration within a period of twelve months. 

Explanation1.—The  grounds  stated  in  the  Fifth  Schedule  shall  guide  in  determining  whether 
circumstances  exist  which  give  rise  to  justifiable  doubts  as  to  the  independence  or  impartiality  of  an 
arbitrator. 

Explanation  2.—The  disclosure  shall  be  made  by  such  person  in  the  form  specified  in  the  Sixth 

Schedule.] 

(3) An arbitrator may be challenged only if— 

1. Subs. by Act 3 of 2016, s. 6, for sub-section (12) (w.e.f.  23-10-2015). 
2. Ins. by s. 6, ibid.(w.e.f. 23-10-2015). 
3. Ins. by s. 7, ibid. (w.e.f. 23-10-2015). 
4. Subs. by s. 8,ibid.,for sub-section (1) (w.e.f.  23-10-2015). 

12 

 
                                                           
(a) circumstances exist that give rise to justifiable doubts as to his independence or impartiality, 

or 

(b) he does not possess the qualifications agreed to by the parties. 

(4)  A  party  may  challenge  an  arbitrator  appointed  by  him,  or  in  whose  appointment  he  has 

participated, only for reasons of which he  becomes aware after the appointment has been made. 

1[(5)  Notwithstanding  any  prior  agreement  to the contrary,  any  person  whose  relationship,  with  the 
parties or counsel or the subject-matter of the dispute, falls under any of the categories specified in the 
Seventh Schedule shall be ineligible to be appointed as an arbitrator: 

Provided that parties may, subsequent to disputes having arisen between them, waive the applicability 

of this sub-section by an express agreement in writing.]   

13.Challenge procedure.—(1) Subject to sub-section (4), the parties are free to agree on a procedure 

for challenging an arbitrator. 

(2) Failing any agreement referred to in sub-section (1), a party who intends to challenge an arbitrator 
shall,  within  fifteen  days  after  becoming  aware  of  the  constitution  of  the  arbitral  tribunal  or  after 
becoming aware of any circumstances referred to in sub-section(3) of section 12, send a written statement 
of the reasons for the challenge to the arbitral tribunal. 

(3) Unless the arbitrator challenged under sub-section (2) withdraws from his office or the other party 

agrees to the challenge, the arbitral tribunal shall decide on the challenge. 

(4) If a challenge under any procedure agreed upon by the parties or under the procedure under sub-
section  (2)  is  not  successful,  the  arbitral  tribunal  shall  continue  the  arbitral  proceedings  and  make  an 
arbitral award. 

(5) Where an arbitral award is made under sub-section (4), the party challenging the arbitrator may 

make an application for setting aside such an arbitral award in accordance with section 34. 

(6) Where an arbitral award is set aside on an application made under sub-section (5), the Court may 

decide as to whether the arbitrator who is challenged is entitled to any fees. 

14. Failure or impossibility to act.—(1) 2[The mandate of an arbitrator shall terminate and he shall 

be substituted by another arbitrator, if]— 

(a) he becomes de jure or de facto unable to perform his functions or for other reasons fails to act 

without undue delay; and 

(b) he withdraws from his office or the parties agree to the termination of his mandate. 

(2) If a controversy remains concerning any of the grounds referred to in clause (a) of sub-section (1), 
a party may, unless otherwise agreed by the parties, apply to the Court to decide on the termination of the 
mandate. 

(3) If, under this section or sub-section (3) of section 13, an arbitrator withdraws from his office or a 
party agrees to the termination of the mandate of an arbitrator, it shall not imply acceptance of the validity 
of any ground referred to in this section or sub-section(3) of section 12. 

15.Termination of mandate and substitution of arbitrator.—(1) In addition to the circumstances 

referred to in section 13 or section 14,the mandate of an arbitrator shall terminate— 

(a) where he withdraws from office for any reason; or 

(b) by or pursuant to agreement of the parties. 

(2) Where the mandate of an arbitrator terminates, a substitute arbitrator shall be appointed according 

to the rules that were applicable to the appointment of the arbitrator being replaced. 

(3) Unless otherwise agreed by the parties, where an arbitrator is replaced under sub-section (2), any 

hearings previously held maybe repeated at the discretion of the arbitral tribunal. 

1. Ins. by Act 3 of 2016, s. 8 (w.e.f. 23-10-2015). 
2. Subs. by s. 9, ibid., for  “The mandate of an arbitrator shall terminate if” (w.e.f. 23-10-2015). 

13 

 
                                                           
(4) Unless otherwise agreed by the parties, an order or ruling of the arbitral tribunal made prior to the 
replacement of an arbitrator under this section shall not be invalid solely because there has been a change 
in the composition of the arbitral tribunal. 

CHAPTER IV 
Jurisdiction of arbitral tribunals 

16.Competence of arbitral tribunal to rule on its jurisdiction.—(1) The arbitral tribunal may rule 
on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the 
arbitration agreement, and for that purpose,— 

(a)  an  arbitration  clause  which  forms  part  of  a  contract  shall  be  treated  as  an  agreement 

independent of the other terms of the contract; and 

(b) a decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the 

invalidity of the arbitration clause. 

(2)  A  plea  that  the  arbitral  tribunal  does  not  have  jurisdiction  shall  be  raised  not  later  than  the 
submission of the statement of defence; however, a party shall not be precluded from raising such a plea 
merely because that he has appointed, or participated in the appointment of, an arbitrator. 

(3) A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the 

matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings. 

(4) The arbitral tribunal may, in either of the cases referred to in sub-section (2) or sub-section (3), 

admit a later plea if it considers the delay justified. 

(5) The arbitral tribunal shall decide on a plea referred to in sub-section (2) or sub-section (3) and, 
where the arbitral tribunal takes a decision rejecting the plea, continue with the arbitral proceedings and 
make an arbitral award. 

(6) A party aggrieved by such an arbitral award may  make an application for setting aside such an 

arbitral award in accordance with section 34. 

1 [17.Interim  measures  ordered  by  arbitral  tribunal.—(1)  A  party  may,  during  the  arbitral 

proceedings 2***, apply to the arbitral tribunal— 

(i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of 

arbitral proceedings; or 

(ii) for an interim measure of protection in respect of any of the following matters, namely:— 

(a) the preservation, interim custody or sale of any goods which are the subject-matter of the 

arbitration agreement; 

(b) securing the amount in dispute in the arbitration; 

(c)  the  detention,  preservation  or  inspection  of  any  property  or  thing  which  is  the  subject-
matter of the dispute in arbitration, or as to which any question may arise therein and authorising 
for any of the aforesaid purposes any person to enter upon any land or building in the possession 
of  any  party,  or  authorising  any  samples  to  be  taken,  or  any  observation  to  be  made,  or 
experiment  to  be  tried,  which  may  be  necessary  or  expedient  for  the  purpose  of  obtaining  full 
information or evidence; 

(d) interim injunction or the appointment of a receiver; 

(e) such other interim measure of protection as may appear to the arbitral tribunal to be just 

and convenient, 

and the arbitral tribunal shall have the same power for making orders, as the court has for the purpose of, 
and in relation to, any proceedings before it. 

1. Subs. by Act 3 of 2016, s. 10, for section 17 (w.e.f. 23-10-2015). 
2.  The  words  and  figures  “or  at  any  time  after  the  making  of  the  arbitral  award  but  before  it  is  enforced  in  accordance  with 

section 36” omitted by Act 33 of 2019, s. 4 (w.e.f. 30-8-2019). 
14 

 
                                                           
(2)  Subject  to  any  orders  passed  in  an  appeal  under  section  37,  any  order  issued  by  the  arbitral 
tribunal  under  this  section  shall  be  deemed  to  be  an  order  of  the  Court  for  all  purposes  and  shall  be 
enforceable under the Code of Civil Procedure,1908 (5 of 1908), in the same manner as if it were an order 
of the Court.] 

CHAPTER V 

Conduct of arbitral proceedings 

18. Equal treatment of parties.—The parties shall be treated with equality and each party shall be 

given a full opportunity to present this case. 

19. Determination of rules of procedure.—(1) The arbitral tribunal shall not be bound by the Code 

of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872). 

(2) Subject to this Part, the parties are free to agree on the procedure to be followed by the arbitral 

tribunal in conducting its proceedings. 

(3) Failing any agreement referred to in sub-section (2), the arbitral tribunal may, subject to this Part, 

conduct the proceedings in the manner it considers appropriate. 

(4)  The  power  of  the  arbitral  tribunal  under  sub-section  (3)  includes  the  power  to  determine  the 

admissibility, relevance, materiality and weight of any evidence. 

20. Place of arbitration.—(1) The parties are free to agree on the place of arbitration. 

(2) Failing any agreement referred to in sub-section (1), the place of arbitration shall be determined 
by the arbitral tribunal having regard to the circumstances of the case, including the  convenience of the 
parties. 

(3)  Notwithstanding  sub-section  (1)  or  sub-section  (2),  the  arbitral  tribunal  may,  unless  otherwise 
agreed by the parties, meet at anyplace it considers appropriate for consultation among  its members, for 
hearing witnesses, experts or the parties, or for inspection of documents, goods or other property. 

21. Commencement of arbitral proceedings.—Unless otherwise agreed by the parties, the arbitral 
proceedings in respect of a particular dispute commence on the date on which a request for that dispute to 
be referred to arbitration is received by the respondent. 

22.  Language.—(1) The parties are free to agree upon the language or languages to be used in the 

arbitral proceedings. 

(2)  Failing  any  agreement  referred  to  in  sub-section  (1),  the  arbitral  tribunal  shall  determine  the 

language or languages to be used in the arbitral proceedings. 

(3) The agreement or determination, unless otherwise specified, shall apply to any written statement 

by a party, any hearing and any arbitral award, decision or other communication by the arbitral tribunal. 

(4)  The  arbitral  tribunal  may  order  that  any  documentary  evidence  shall  be  accompanied  by  a 
translation  into  the  language  or  languages  agreed  upon  by  the  parties  or  determined  by  the  arbitral 
tribunal. 

23. Statements of claim and defence.—(1) Within the period of time agreed upon by the parties or 
determined  by  the  arbitral tribunal,  the  claimant  shall  state  the  facts  supporting  his  claim,  the  points  at 
issue  and  the  relief  or  remedy  sought,  and  the  respondent  shall  state  his  defence  in  respect  of  these 
particulars, unless the parties have otherwise agreed as to the required elements of those statements. 

(2) The parties may submit with their statements all documents they consider to be relevant or may 

add a reference to the documents or other evidence they will submit. 

1[(2A)  The  respondent,  in  support  of  his  case,  may  also  submit  a  counterclaim  or  plead  a  set-off, 
which shall be adjudicated upon by the arbitral tribunal, if such counterclaim or  set-off falls within the 
scope of the arbitration agreement.] 

1. Ins. by Act 3 of 2016, s. 11 (w.e.f. 23-10-2015). 

15 

 
                                                           
(3)  Unless  otherwise  agreed  by  the  parties,  either  party  may  amend  or  supplement  his  claim  or 
defence during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate 
to allow the amendment or supplement having regard to the delay in making it. 

1[(4) The statement of claim and defence under this section shall be completed within a period of six 
months from the date the arbitrator or all the arbitrators, as the case may be, received notice, in writing of 
their appointment.] 

24.Hearings  and  written  proceedings.—(1)  Unless  otherwise  agreed  by  the  parties,  the  arbitral 
tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, 
or whether the proceedings shall be conducted on the basis of documents and other materials: 

Provided that the arbitral tribunal shall hold oral hearings, at an appropriate stage of the proceedings, 

on a request by a party, unless the parties have agreed that no oral hearing shall be held: 

2[Provided  further  that  the  arbitral  tribunal  shall,  as  far  as  possible,  hold  oral  hearings  for  the 
presentation of evidence or for oral argument on day-to-day basis, and not grant any adjournments unless 
sufficient  cause  is  made  out,  and  may  impose  costs  including  exemplary  costs  on  the  party  seeking 
adjournment without any sufficient cause.] 

(2)  The  parties  shall  be  given  sufficient  advance  notice  of  any  hearing  and  of  any  meeting  of  the 

arbitral tribunal for the purposes of inspection of documents, goods or other property. 

(3) All statements, documents or other information supplied to, or applications made to the arbitral 
tribunal  by  one  party  shall  be  communicated  to  the  other  party,  and  any  expert  report  or  evidentiary 
document  on  which  the  arbitral  tribunal  may  rely  in  making  its  decision  shall  be  communicated  to  the 
parties. 

25.Default  of  a  party.—Unless otherwise agreed by the  parties, where, without showing sufficient 

cause,— 

(a) the claimant fails to communicate his statement of claim in accordance with sub-section (1) of 

section 23, the arbitral tribunal shall terminate the proceedings; 

(b) the respondent fails to communicate his statement of defence in accordance with sub-section 
(1) of section 23, the arbitral tribunal shall continue the proceedings without treating that failure in 
itself  as  an  admission  of  the  allegations  by  the  claimant 3[and  shall  have  the  discretion  to  treat  the 
right of the respondent to file such statement of defence as having been forfeited]. 

(c)  a  party  fails  to  appear  at  an  oral  hearing  or  to  produce  documentary  evidence,  the  arbitral 

tribunal may continue the proceedings and make the arbitral award on the evidence before it. 

26. Expert appointed by arbitral tribunal.—(1) Unless otherwise agreed by the parties, the arbitral 

tribunal may— 

(a) appoint one or more experts to report to it on specific issues to be determined by the arbitral 

tribunal, and 

(b) require a party to give the expert any relevant information or to produce, or to provide access 

to, any relevant documents, goods or other property for his inspection. 

(2) Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal considers it 
necessary, the expert shall, after delivery of his written or oral report, participate in an oral hearing where 
the parties have the opportunity to put questions to him and to present expert witnesses in order to testify 
on the points at issue. 

(3) Unless otherwise agreed by the parties, the expert shall, on the request of a party, make available 
to that party for examination all documents, goods or other property in the possession of the expert with 
which he was provided in order to prepare his report. 

27.Court  assistance in  taking  evidence.—(1) The arbitral tribunal, or a party with the approval of 

the arbitral tribunal, may apply to the Court for assistance in taking evidence. 

1. Ins. by Act 33 of 2019, s. 5 (w.e.f. 30-8-2019). 
2. Ins. by Act 3 of 2016, s. 12 (w.e.f. 23-10-2015). 
3. Ins. by s. 13, ibid. (w.e.f. 23-10-2015). 

16 

 
                                                           
(2) The application shall specify— 

(a) the names and addresses of the parties and the arbitrators; 

(b) the general nature of the claim and the relief sought; 

(c) the evidence to be obtained, in particular,— 

(i)  the  name  and  address  of  any  person  to  be  heard  as  witness  or  expert  witness  and  a 

statement of the subject-matter of the testimony required; 

(ii) the description of any document to be produced or property to be inspected. 

(3) The Court may, within its competence and according to its rules on taking evidence, execute the 

request by ordering that the evidence be provided directly to the arbitral tribunal. 

(4)  The  Court  may,  while  making  an  order  under  sub-section  (3),  issue  the  same  processes  to 

witnesses as it may issue in suits tried before it. 

(5) Persons failing to attend in accordance with such process, or making any other default, or refusing 
to  give  their  evidence,  or  guilty  of  any  contempt  to  the  arbitral  tribunal  during  the  conduct  of  arbitral 
proceedings, shall be subject to the like disadvantages, penalties and punishments by order of the Court 
on the representation of the arbitral tribunal as they would incur for the like offences in suits tried before 
the Court. 

(6)  In  this  section  the  expression  “Processes”  includes  summonses  and  commissions  for  the 

examination of witnesses and summonses to produce documents. 

CHAPTER VI 

Making of arbitral award and termination of proceedings 

28.Rules  applicable  to  substance  of  dispute.—(1)  Where  the  place  of  arbitration  is  situate  in 

India,— 

(a) in an arbitration other than an international commercial arbitration, the arbitral tribunal shall 
decide the dispute submitted to arbitration in accordance with the substantive law for the time being 
in force in India; 

(b) in international commercial arbitration,— 

(i) the arbitral tribunal shall decide the dispute in accordance with the rules of law designated 

by the parties as applicable to the substance of the dispute; 

(ii)  any  designation  by  the  parties  of  the  law  or  legal  system  of  a  given  country  shall  be 
construed, unless otherwise expressed, as directly referring to the substantive law of that country 
and not to its conflict of laws rules; 

(iii)  failing  any  designation  of  the  law  under  clause  (a)  by  the  parties,  the  arbitral  tribunal 
shall apply the rules of law it considers to be appropriate given all the circumstances surrounding 
the dispute. 

(2) The arbitral tribunal shall decide  ex aequoet bono  or as amiable compositeur only if the parties 

have expressly authorised it to do so. 

1[(3) While deciding and making an award, the arbitral tribunal shall, in all cases, take into account 

the terms of the contract and trade usages applicable to the transaction.] 

29.Decision making by panel of arbitrators.—(1) Unless otherwise agreed by the parties, in arbitral 
proceedings  with  more  than  one  arbitrator,  any  decision  of  the  arbitral  tribunal  shall  be  made  by  a 
majority of all its members. 

(2)  Notwithstanding  sub-section  (1),  if  authorised  by  the  parties  or  all  the  members  of  the  arbitral 

tribunal, questions of procedure may be decided by the presiding arbitrator. 

1. Subs. by Act 3 of 2016, s. 14, for sub-section (3) (w.e.f. 23-10-2015). 

17 

 
                                                           
1 [29A.Time  limit  for  arbitral  award.— 2 [(1)The  award  in  matters  other  than  international 
commercial arbitration shall be made by the arbitral tribunal within a period of twelve months from the 
date of completion of pleadings under sub-section (4) of section 23: 

Provided  that  the  award  in  the  matter  of  international  commercial  arbitration  may  be  made  as 
expeditiously as possible and endeavor may be made to dispose of the matter within a period of twelve 
months from the date of completion of pleadings under sub-section (4) of section 23.] 

(2) If the award is made within a period of six months from the date the arbitral tribunal enters upon 
the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties 
may agree. 

(3) The parties may, by consent, extend the period specified in sub-section (1) for making award for a 

further period not exceeding six months. 

(4)  If  the  award  is  not  made  within  the  period  specified  in  sub-section  (1)  or  the  extended  period 
specified  under  sub-section  (3),  the  mandate  of  the  arbitrator(s)  shall  terminate  unless  the  Court  has, 
either prior to or after the expiry of the period so specified, extended the period: 

Provided  that  while  extending  the  period  under  this  sub-section,  if  the  Court  finds  that  the 
proceedings  have  been  delayed  for  the  reasons  attributable  to  the  arbitral  tribunal,  then,  it  may  order 
reduction of fees of arbitrator(s) by not exceeding five per cent. for each month of such delay. 

3[Provided  further  that  where  an  application  under  sub-section  (5)  is  pending,  the  mandate  of  the 

arbitrator shall continue till the disposal of the said application: 

Provided  also  that  the  arbitrator  shall  be  given  an  opportunity  of  being  heard  before  the  fees  is 

reduced.] 

(5)  The  extension  of  period  referred  to  in  sub-section  (4)  may  be  on  the  application  of  any  of  the 
parties and may be granted only for sufficient cause and on such terms and conditions as may be imposed 
by the Court. 

(6) While extending the period referred to in sub-section (4), it shall be open to the Court to substitute 
one or all of the arbitrators and if one or all of the arbitrators are substituted, the arbitral proceedings shall 
continue from the stage already reached and on the basis of the evidence and material already on record, 
and the arbitrator(s)appointed under this section shall be deemed to have received the said evidence and 
material. 

(7)  In  the  event  of  arbitrator(s)  being  appointed  under  this  section,  the  arbitral  tribunal  thus 

reconstituted shall be deemed to be in continuation of the previously appointed arbitral tribunal. 

(8) It shall be open to the Court to impose actual or exemplary costs upon any of the parties under this 

section. 

(9) An application filed under sub-section (5) shall be disposed  of by the Court as expeditiously as 
possible and endeavour shall be made to dispose of the matter within a period of sixty days from the date 
of service of notice on the opposite party. 

Jammu and Kashmir and Ladakh (UTs).— 

Amendment of sections 29A.— 

STATE AMENDMENT 

(a) for sub-section (1), the following sub-section shall be substituted, namely:––  

“(1) The award shall be made within a period of twelve months from the date the arbitral tribunal 

enters upon the reference. 

1. Ins. by Act 3 of 2016, s. 15 (w.e.f. 23-10-2015). 
2. Subs. by Act 33 of 2019, s. 6, for sub-section (1) (w.e.f. 30-8-2019). 
3. Ins. by s. 6, ibid. (w.e.f. 30-8-2019). 

18 

 
                                                           
Explanation.—For the purposes of this sub-section, an arbitral tribunal shall be deemed to have 
entered upon the reference on the date on which the arbitrator or all the arbitrators, as the case may 
be, have received notice, in writing, of their appointment.”; 

(b) in sub-section (4), omit second and third provisos. 

[Vide  the  Jammu  and  Kashmir  Reorganization  (Adaptation  of  Central  Laws)  Order,  2020,  notification 
No. S.O. 1123(E) dated (18-3-2020) and Vide Union Territory of Ladakh Reorganisation (Adaptation of 
Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] 

29B.  Fast  track  procedure.—(1) Notwithstanding anything contained in this Act, the parties to an 
arbitration agreement, may, at any stage either before or at the time of appointment of the arbitral tribunal, 
agree in writing to have their dispute resolved by fast track procedure specified in sub-section (3). 

(2)  The  parties  to  the  arbitration  agreement,  while  agreeing  for  resolution  of  dispute  by  fast  track 
procedure, may agree that the arbitral tribunal shall consist of a sole arbitrator who shall be chosen by the 
parties. 

(3)  The  arbitral  tribunal  shall  follow  the  following  procedure  while  conducting  arbitration 

proceedings under sub-section (1):— 

(a) The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents and 

submissions filed by the parties without any oral hearing; 

(b) The arbitral tribunal shall have power to call for any further information or clarification from 

the parties in addition to the pleadings and documents filed by them; 

(c) An oral hearing may be held only, if, all the parties make a request or if the arbitral tribunal 

considers it necessary to have oral hearing for clarifying certain issues; 

(d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is held, 

and adopt such procedure as deemed appropriate for expeditious disposal of the case. 

(4) The award under this section shall be made within a period of six months from the date the arbitral 

tribunal enters upon the reference. 

(5)  If  the  award  is  not  made  within  the  period  specified  in  sub-section  (4),  the  provisions  of  sub-

sections (3) to (9) of section 29A shall apply to the proceedings. 

(6) The fees payable to the arbitrator and the manner of payment of the fees shall be such as may be 

agreed between the arbitrator and the parties.] 

30.  Settlement.—(1)  It  is not incompatible  with  an  arbitration agreement for  an  arbitral tribunal  to 
encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use 
mediation,  conciliation  or  other  procedures  at  any  time  during  the  arbitral  proceedings  to  encourage 
settlement. 

(2) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the 
proceedings  and,  if  requested  by  the  parties  and  not  objected  to  by  the  arbitral  tribunal,  record  the 
settlement in the form of an arbitral award on agreed terms. 

(3) An arbitral award on agreed terms shall be made in accordance with section 31 and shall state that 

it is an arbitral award. 

(4) An arbitral award on agreed terms shall have the same status and effect as any other arbitral award 

on the substance of the dispute. 

31. Form and contents of arbitral award.—(1) An arbitral award shall be made in writing and shall 

be signed by the members of the arbitral tribunal. 

(2)  For  the  purposes  of  sub-section  (1),  in  arbitral  proceedings  with  more  than  one  arbitrator,  the 
signatures  of  the  majority  of  all  the  members  of  the  arbitral  tribunal  shall  be  sufficient  so  long  as  the 
reason for any omitted signature is stated. 

(3) The arbitral award shall state the reasons upon which it is based, unless— 

(a) the parties have agreed that no reasons are to be given, or 

19 

 
(b) the award is an arbitral award on agreed terms under section 30. 

(4) The arbitral award shall state its date and the place of arbitration as determined in accordance with 

section 20 and the award shall be deemed to have been made at that place. 

(5) After the arbitral award is made, a signed copy shall be delivered to each party. 

(6)  The  arbitral  tribunal  may,  at  any  time  during  the  arbitral  proceedings,  make  an  interim  arbitral 

award on any matter with respect to which it may make a final arbitral award. 

(7)  (a)  Unless  otherwise  agreed  by  the  parties,  where  and  in  so  far  as  an  arbitral  award  is  for  the 
payment of money, the arbitral tribunal may include in the sum for which the award is made interest, at 
such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the 
period between the date on which the cause of action arose and the date on which the award is made. 

1[(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry 
interest at the rate of two per cent. higher than the current rate of interest prevalent on the date of award, 
from the date of award to the date of payment. 

Explanation.—The expression “current rate of interest” shall have the same meaning as assigned to it 

under clause (b) of section 2 of the Interest Act, 1978 (14 of 1978).] 

2[(8) The costs of an arbitration shall be fixed by the arbitral tribunal in accordance with section 31A.] 

Explanation.—For the purpose of clause (a), “costs” means reasonable costs relating to— 

(i) the fees and expenses of the arbitrators and witnesses, 

(ii) legal fees and expenses, 

(iii) any administration fees of the institution supervising the arbitration, and 

(iv) any other expenses incurred in connection with the arbitral proceedings and the arbitral 

award. 

3[31A. Regime for costs.—(1) In relation to any arbitration proceeding or a proceeding under any of 
the  provisions  of  this  Act  pertaining  to  the  arbitration,  the  Court  or  arbitral  tribunal,  notwithstanding 
anything  contained  in  the  Code  of  Civil  Procedure,1908  (5  of  1908),  shall  have  the  discretion  to 
determine— 

(a) whether costs are payable by one party to another; 

(b) the amount of such costs; and 

(c) when such costs are to be paid. 

Explanation.—For the purpose of this sub-section, “costs” means reasonable costs relating to— 

(i) the fees and expenses of the arbitrators, Courts and witnesses; 

(ii) legal fees and expenses; 

(iii) any administration fees of the institution supervising the arbitration; and 

(iv)  any  other  expenses  incurred  in  connection  with  the  arbitral  or  Court  proceedings  and  the 

arbitral award. 

(2) If the Court or arbitral tribunal decides to make an order as to payment of costs,— 

(a)  the  general  rule  is  that  the  unsuccessful  party  shall  be  ordered  to  pay  the  costs  of  the 

successful party; or 

(b) the Court or arbitral tribunal may make a different order for reasons to be recorded in writing. 

(3) In determining the costs, the Court or arbitral tribunal shall have regard to all the circumstances, 

including— 

1. Subs. by Act 3 of 2016, s. 16, for clause (b) (w.e.f. 23-10-2015). 
2. Subs. by s. 16, ibid., for sub-section (8) (w.e.f. 23-10-2015). 
3. Ins. by s.17, ibid. (w.e.f. 23-10-2015). 

20 

 
                                                           
(a) the conduct of all the parties; 

(b) whether a party has succeeded partly in the case; 

(c) whether the party had made a frivolous counterclaim leading to delay in the disposal of the 

arbitral proceedings; and 

(d) whether any reasonable offer to settle the dispute is made by a party and refused by the other 

party. 

(4) The  Court  or arbitral tribunal  may  make  any  order  under  this  section including  the  order that a 

party shall pay— 

(a) a proportion of another party’s costs; 

(b) a stated amount in respect of another party’s costs; 

(c) costs from or until a certain date only; 

(d) costs incurred before proceedings have begun; 

(e) costs relating to particular steps taken in the proceedings; 

(f ) costs relating only to a distinct part of the proceedings; and 

(g) interest on costs from or until a certain date. 

(5)  An  agreement  which  has  the  effect  that  a  party  is  to  pay  the  whole  or  part  of  the  costs  of  the 
arbitration in  any  event  shall  be  only  valid if  such  agreement  is  made  after  the  dispute  in  question  has 
arisen.] 

32.  Termination  of  proceedings.—(1)  The  arbitral  proceedings  shall  be  terminated  by  the  final 

arbitral award or by an order of the arbitral tribunal under sub-section (2). 

(2)  The  arbitral  tribunal  shall  issue  an  order  for  the  termination  of  the  arbitral  proceedings 

where— 

(a)  the  claimant  withdraws  his  claim,  unless  the  respondent  objects  to  the  order  and  the 
arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the 
dispute, 

(b) the parties agree on the termination of the proceedings, or 

(c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason 

become unnecessary or impossible. 

(3) Subject to section 33 and sub-section (4) of section 34, the mandate of the arbitral tribunal shall 

terminate with the termination of the arbitral proceedings. 

33. Correction and interpretation of award; additional  award.—(1) Within thirty days from the 

receipt of the arbitral award, unless another period of time has been agreed upon by the parties— 

(a)  a  party,  with  notice  to  the  other  party,  may  request  the  arbitral  tribunal  to  correct  any 
computation  errors,  any  clerical  or  typographical  errors  or  any  other  errors  of  a  similar  nature 
occurring in the award; 

(b)  if  so  agreed  by  the  parties,  a  party,  with  notice  to  the  other  party,  may  request  the  arbitral 

tribunal to give an interpretation of a specific point or part of the award. 
(2)  If  the  arbitral  tribunal  considers  the  request  made  under  sub-section  (1)  to  be  justified,  it  shall 
make the correction or give the interpretation within thirty days from the receipt of the request and the 
interpretation shall form part of the arbitral award. 

(3) The arbitral tribunal may correct any error of the type referred to in clause (a) of sub-section (1), 

on its own initiative, within thirty days from the date of the arbitral award. 

(4) Unless otherwise agreed by the parties, a party with notice to the other party, may request, within 
thirty days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award 
as to claims presented in the arbitral proceedings but omitted from the arbitral award. 

(5)  If  the  arbitral  tribunal  considers  the  request  made  under  sub-section  (4)  to  be  justified,  it  shall 

make the additional arbitral award within sixty days from the receipt of such request. 

21 

 
(6)  The  arbitral  tribunal  may  extend,  if  necessary,  the  period  of  time  within  which  it  shall  make  a 
correction, give an interpretation or make an additional arbitral award under sub-section (2) or sub-section 
(5). 

(7)  Section  31  shall  apply  to  a  correction  or  interpretation  of  the  arbitral  award  or  to  an  additional 

arbitral award made under this section. 

CHAPTER VII 

Recourse against arbitral award 

34. Application for setting aside arbitral award.—(1) Recourse to a Court against an arbitral award 
may be made only by an application for setting aside such award in accordance with sub-section (2) and 
sub-section (3). 

(2) An arbitral award may be set aside by the Court only if— 

(a) the party making the application 1[establishes on the basis of the record of the arbitral tribunal 

that]— 

(i) a party was under some incapacity, or 

(ii) the arbitration agreement is not valid under the law to which the parties have subjected it 

or, failing any indication thereon, under the law for the time being in force; or 

(iii) the party  making the application was not given proper notice of the appointment of an 

arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or 

(iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms 
of  the  submission  to  arbitration,  or  it  contains  decisions  on  matters  beyond  the  scope  of  the 
submission to arbitration: 

Provided that, if the decisions on matters submitted to arbitration can be separated from those 
not  so  submitted,  only  that  part  of  the  arbitral  award  which  contains  decisions  on  matters  not 
submitted to arbitration may be set aside; or 

(v)  the  composition  of  the  arbitral  tribunal  or  the  arbitral  procedure  was  not  in  accordance 
with the agreement of the parties, unless such agreement was in conflict with a provision of this 
Part  from  which the  parties  cannot  derogate,  or,  failing  such  agreement,  was  not in  accordance 
with this Part; or 

(b) the Court finds that— 

(i) the subject-matter of the dispute is not capable of settlement by arbitration under the law 

for the time being in force, or 

(ii) the arbitral award is in conflict with the public policy of India. 

2[Explanation 1.—For the avoidance of any doubt, it is clarified that an award is in conflict with the 

public policy of India, only if,— 

(i) the making of the award was induced or affected by fraud or corruption or was in violation 

of section 75 or section 81; or 

(ii) it is in contravention with the fundamental policy of Indian law; or 

(iii) it is in conflict with the most basic notions of morality or justice. 

Explanation 2.—For the avoidance of doubt, the test as to whether there is a contravention with the 

fundamental policy of Indian law shall not entail a review on the merits of the dispute.] 

3[(2A) An arbitral award arising out of arbitrations other than international commercial arbitrations, 
may  also  be  set  aside  by  the  Court,  if  the  Court  finds  that  the  award  is  vitiated  by  patent  illegality 
appearing on the face of the  award: 

1. Subs. by Act 33 of 2019, s. 7, for “furnishes proof that” (w.e.f. 30-8-2019). 
2. Subs. by Act 3 of 2016, s. 18, for the Explanation(w.e.f. 23-10-2015). 
3. Ins. by s. 18, ibid. (w.e.f. 23-10-2015). 

22 

 
                                                           
Provided that an award shall not be set aside merely on the ground of an erroneous application of the 

law or by reappreciation of evidence.] 

(3) An application for setting aside may not be made after three months have elapsed from the date on 
which the party making that application had received the arbitral award or, if a request had been made 
under section 33, from the date on which that request had been disposed of by the arbitral tribunal: 

Provided  that  if  the  Court  is  satisfied  that  the  applicant  was  prevented  by  sufficient  cause  from 
making  the  application  within the said  period  of  three  months  it  may  entertain the application  within a 
further period of thirty days, but not thereafter. 

(4) On receipt of an application under sub-section (1), the Court may, where it is appropriate and it is 
so requested by a party, adjourn the proceedings for a period of time determined by it in order to give the 
arbitral tribunal an opportunity to resume the arbitral proceedings  or to take such other action as in the 
opinion of arbitral tribunal will eliminate the grounds for setting aside the arbitral award. 

1[(5) An application under this section shall be filed by a party only after issuing a prior notice to the 
other  party  and  such  application  shall  be  accompanied  by  an  affidavit  by  the  applicant  endorsing 
compliance with the said requirement. 

(6) An application under this section shall be disposed of expeditiously, and in any event, within a period of one 
year from the date on which the notice referred to in sub-section (5) is served upon the other party.] 
STATE AMENDMENT 

Jammu and Kashmir and Ladakh (UTs). 

Amendment of section 34.— 

(i) after sub-section (2), insert the following sub-section, namely:-  

“(2A) An arbitral award may also be set aside by the Court, if the Court finds that the award is 

vitiated by patent illegality appearing on the face of the award: 

Provided that an award shall not be set aside merely on the ground of an erroneous application of 

the law or by re-appreciation of evidence.”; 

(ii) in sub-section (3),– 

(i) for “three months” substitute, “six months”; 

(ii) in proviso thereto, for, “three months” and “thirty days” substitute respectively “six months” 

and “sixty days”. 

[Vide  the  Jammu  and  Kashmir  Reorganization  (Adaptation  of  Central  Laws)  Order,  2020,  notification 
No. S.O. 1123(E) dated (18-3-2020) and Vide Union Territory of Ladakh Reorganisation (Adaptation of 
Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] 

CHAPTER VIII 

Finality and enforcement of arbitral awards 

35. Finality of arbitral awards.—Subject to this Part an arbitral award shall be final and binding on 

the parties and persons claiming under them respectively. 

2[36.  Enforcement.—(1)  Where  the  time  for  making  an  application  to  set  aside  the  arbitral  award 
under  section  34  has  expired,  then,  subject  to  the  provisions  of  sub-section  (2),  such  award  shall  be 
enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), in the same 
manner as if it were a decree of the court. 

1. Ins. by Act 3 of 2016, s. 18 (w.e.f.23-10-2015). 
2. Subs. by s. 19,ibid., for section 36 (w.e.f. 23-10-2015). 

23 

 
                                                           
(2) Where an application to set aside the arbitral award has been filed in the Court under section 34, 
the  filing  of  such  an  application  shall  not  by  itself  render  that  award  unenforceable,  unless  the  Court 
grants  an  order  of  stay  of the  operation  of the  said  arbitral  award  in  accordance  with the  provisions  of  
sub-section (3), on a separate application made for that purpose. 

(3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, 
the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for 
reasons to be recorded in writing: 

Provided  that  the  Court  shall,  while  considering  the  application  for  grant  of  stay  in  the  case  of  an 
arbitral  award  for  payment  of  money,  have  due  regard  to  the  provisions  for  grant  of  stay  of  a  money 
decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).] 

1[Provided further that where the Court is satisfied that a Prima facie case is made out that,— 

(a) the arbitration agreement or contract which is the basis of the award; or 
(b) the making of the award, 

was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of 
the challenge under section 34 to the award. 

Explanation.—For the removal of doubts, it is hereby clarified that the above proviso shall apply to 
all court cases arising out of or in relation to arbitral proceedings, irrespective of whether the arbitral or 
court  proceedings  were  commenced  prior  to  or  after  the  commencement  of  the  Arbitration  and 
Conciliation (Amendment) Act, 2015 (3 of 2016).] 

CHAPTER IX 
Appeals 

37.  Appealable  orders.—(1) 2[Notwithstanding  anything  contained  in  any  other  law  for  the  time 
being in force, an appeal] shall lie from the following orders (and from no others) to the Court authorised 
by law to hear appeals from original decrees of the Court passing the order, namely:— 

3[(a) refusing to refer the parties to arbitration under section 8; 
 (b) granting or refusing to grant any measure under section 9; 
(c) setting aside or refusing to set aside an arbitral award under section 34.] 

(2) Appeal shall also lie to a court from an order of the arbitral tribunal— 

(a) accepting the plea referred to in sub-section (2) or sub-section (3) of section 16; or 
(b) granting or refusing to grant an interim measure under section 17. 

(3) No second appeal shall lie from an order passed in appeal under this section, but nothing in this 

section shall affect or takeaway any right to appeal to the Supreme Court. 

CHAPTER X 
Miscellaneous 

38. Deposits.—(1) The arbitral tribunal may fix the amount of the deposit or supplementary deposit, 
as  the  case  may  be,  as  an  advance  for  the  costs  referred  to  in  sub-section  (8)  of  section  31,  which  it 
expects will be incurred in respect of the claim submitted to it: 

Provided that where, apart from the claim, a counter-claim has been submitted to the arbitral tribunal, 

it may fix separate amount of deposit for the claim and counter-claim. 

(2) The deposit referred to in sub-section (1) shall be payable in equal shares by the parties: 
Provided that where one party fails to pay his share of the deposit, the other party may pay that share: 

Provided  further  that  where  the  other  party  also  does  not  pay  the  aforesaid  share  in  respect  of  the 
claim  or  the  counter-claim,  the  arbitral  tribunal  may  suspend  or  terminate  the  arbitral  proceedings  in 
respect of such claim or counter-claim, as the case may be. 

(3) Upon termination of the arbitral proceedings, the arbitral tribunal shall render an accounting to the 
parties of the deposits received and shall return any unexpended balance to the party or parties, as the case 
may be. 

1. Ins. by Act 3 of 2021, s. 2 (w.e.f. 23-10-2015). 
2. Subs. by Act 33 of 2019, s. 8, for “An appeal” (w.e.f. 30-8-2019). 
3. Subs. by Act 3 of 2016, s. 20, for clauses (a) and (b) (w.e.f. 23-10-2015). 

24 

 
                                                           
39. Lien on arbitral award and deposits as to costs.—(1) Subject to the provisions of sub-section 
(2) and to any provision to the contrary in the arbitration agreement, the arbitral tribunal shall have a lien 
on the arbitral award for any unpaid costs of the arbitration. 

(2)  If  in  any  case  an  arbitral  tribunal  refuses  to  deliver  its  award  except  on  payment  of  the  costs 
demanded  by  it,  the  Court  may,  on  an  application  in  this  behalf,  order  that  the  arbitral  tribunal  shall 
deliver the arbitral award to the applicant on payment into Court by the applicant of the costs demanded, 
and shall, after such inquiry, if any, as it thinks fit, further order that out of the money so paid into Court 
there shall be paid to the arbitral tribunal by way of costs such sum as the Court may consider reasonable 
and that the balance of the money, if any, shall be refunded to the applicant. 

(3) An application under sub-section (2) may be made by any party unless the fees demanded have 
been fixed by written agreement between him and the arbitral tribunal, and the arbitral tribunal shall be 
entitled to appear and be heard on any such application. 

(4) The Court may make such orders as it thinks fit respecting the costs of the arbitration where any 
question  arises  respecting  such costs  and  the  arbitral award  contains no sufficient  provision concerning 
them. 

40.  Arbitration  agreement  not  to  be  discharged  by  death  of  party  thereto.—(1) An arbitration 
agreement shall not be discharged by the death of any party thereto either as respects the deceased or as 
respects any other party, but shall in such event been forceable by or against the legal representative of 
the deceased. 

(2) The mandate of an arbitrator shall not be terminated by the death of any party by whom he was 

appointed. 

(3) Nothing in this section shall affect the operation of any law by virtue of which any right of action 

is extinguished by the death of a person. 

41. Provisions in case of insolvency.—(1) Where it is provided by a term in a contract to which an 
insolvent  is  a  party  that  any  dispute  arising  there  out  or  in  connection  therewith  shall  be  submitted  to 
arbitration, the said term shall, if the receiver adopts the contract, be enforceable by or against him so far 
as it relates to any such dispute. 

(2)  Where  a  person  who  has  been  adjudged  an  insolvent  had,  before  the  commencement  of  the 
insolvency  proceedings,  become  a  party  to  an  arbitration  agreement,  and  any  matter  to  which  the 
agreement applies is required to be determined in connection with, or for the purposes of, the insolvency 
proceedings,  then,  if  the  case  is  one  to  which  sub-section  (1)  does  not  apply,  any  other  party  or  the 
receiver may apply to the judicial authority having jurisdiction in the insolvency proceedings for an order 
directing  that  the  matter  in  question shall be  submitted  to  arbitration in  accordance  with  the  arbitration 
agreement, and the judicial authority may, if it is of opinion that, having regard to all the circumstances of 
the case, the matter ought to be determined by arbitration, make an order accordingly. 

(3) In this section the expression “receiver” includes an Official Assignee. 
42. Jurisdiction.—Notwithstanding anything contained elsewhere in this Part or in any other law for 
the time being in force, where with respect to an arbitration agreement any application under this Part has 
been  made  in  a  Court,  that  Court  alone  shall  have  jurisdiction  over  the  arbitral  proceedings  and  all 
subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that 
Court and in no other Court. 

1[42A.  Confidentiality  of  information.—Notwithstanding anything contained by any other law for 
the time being in force, the arbitrator, the arbitral institution and the parties to the arbitration agreement 
shall maintain confidentially of all arbitral proceedings except award where its disclosure is necessary for 
the purpose of implementation and enforcement of award. 

42B. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against 
the arbitrator for anything which is in good faith done or intended to be done under this Act or the rules or 
regulations made thereunder.] 

43. Limitations.—(1) The Limitation Act, 1963 (36 of 1963), shall apply to arbitrations as it applies 

to proceedings in court. 

(2) For the purposes of this section and the Limitation Act, 1963 (36 of 1963),an arbitration shall be 

deemed to have commenced on the date referred to in section 21. 

1. Ins. by Act 33 of 2019, s. 9 (w.e.f. 30-8-2019). 

25 

 
                                                           
(3) Where an arbitration agreement to submit future disputes to arbitration provides that any claim to 
which the agreement applies shall be barred unless some step to commence arbitral proceedings is taken 
within a time fixed by the agreement, and a dispute arises to which the agreement applies, the Court, if it 
is  of  opinion  that  in  the  circumstances  of  the  case  undue  hardship  would  otherwise  be  caused,  and 
notwithstanding that the time so fixed has expired, may on such terms, if any, as the justice of the case 
may require, extend the time for such period as it thinks proper. 

(4) Where the Court orders that an arbitral award be set aside, the period between the commencement 
of the arbitration and the date of the order of the Court shall be excluded in computing the time prescribed 
by  the  Limitation  Act,  1963  (36  of  1963),for  the  commencement  of  the  proceedings  (including 
arbitration) with respect to the dispute so submitted. 

PART II 

ENFORCEMENT OF CERTAIN FOREIGN AWARDS 

CHAPTER I 

New York Convention Awards 

44.  Definition.—In  this  Chapter,  unless  the  context  otherwise  requires,  “foreign  award”  means  an 
arbitral  award  on  differences  between  persons  arising  out  of  legal  relationships,  whether  contractual  or 
not, considered as commercial under the law in force in India, made on or after the 11th day of October, 
1960— 

(a) in pursuance of an agreement in writing for arbitration to which the Convention set forth in 

the First Schedule applies, and 

(b) in one of such territories as the Central Government, being satisfied that reciprocal provisions have been 
made may, by notification in the Official Gazette, declare to be territories to which the said Convention applies. 

45. Power of judicial authority to refer parties to arbitration.—Notwithstanding anything contained in Part I 
or  in  the  Code  of  Civil  Procedure,  1908  (5  of  1908),a  judicial  authority,  when  seized  of  an  action  in  a  matter  in 
respect  of  which  the  parties  have  made  an  agreement  referred  to  in  section  44,  shall,  at  the  request  of  one  of  the 
parties or any person claiming through or under him, refer the parties to arbitration, 1[unless it prima facie finds] that 
the said agreement is null and void, inoperative or incapable of being performed. 

46. When foreign award binding.—Any foreign award which would be enforceable under this Chapter 
shall  be  treated  as  binding  for  all  purposes  on  the  persons  as  between  whom  it  was  made,  and  may 
accordingly  be  relied  on  by  any  of  those  persons  by  way  of  defence,  set  off  or  otherwise  in  any  legal 
proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as 
including references to relying on an award. 

47. Evidence.—(1) The party applying for the enforcement of a foreign award shall, at the time of the 

application, produce before the court— 

(a) the original award or a copy thereof, duly authenticated in the manner required by the law of 

the country in which it was made; 

(b) the original agreement for arbitration or a duly certified copy thereof; and 

(c) such evidence as may be necessary to prove that the award is a foreign award. 

(2) If the award or agreement to be produced under sub-section (1) is in a foreign language, the party 
seeking to enforce the award shall produce a translation into English certified as correct by a diplomatic 
or consular agent of the country to which that party belongs or certified as correct in such other manner as 
may be sufficient according to the law in force in India. 

2[Explanation.—In this section and in the sections following in this Chapter, “Court” means the High 
Court having original jurisdiction to decide the questions forming the subject-matter of the arbitral award 
if the same had been the subject-matter of a suit on its original civil jurisdiction and in other cases, in the 
High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.] 

1. Subs. by Act 33 of 2019, s. 11, for “unless it finds” (w.e.f. 30-8-2019). 
2. Subs. by Act 3 of 2016, s. 21, for the Explanation (w.e.f. 23-10-2015). 

26 

 
                                                           
48.  Conditions for  enforcement  of foreign  awards.—(1) Enforcement of a foreign award may be 
refused,  at the  request  of  the  party  against  whom  it is  invoked,  only  if that party  furnishes to the  court 
proof that— 

(a) the parties to the agreement referred to in section 44 were, under the law applicable to them, 
under  some  incapacity,  or  the  said  agreement  is  not  valid  under  the  law  to  which  the  parties  have 
subjected  it  or,  failing  any  indication  thereon,  under  the  law  of  the  country  where  the  award  was 
made; or 

(b) the party against whom the award is invoked was not given proper notice of the appointment 

of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or 

(c) the award deals with a difference not contemplated by or not falling within the terms of the 
submission to arbitration, or it contains decisions on matters beyond the scope of the submission to 
arbitration: 

Provided that, if the decisions on matters submitted to arbitration can be separated from those not 
so submitted, that part of the award which contains decisions on matters submitted to arbitration may 
be enforced; or 

(d) the composition of the arbitral authority or the arbitral procedure was not in accordance with 
the agreement of the parties, or, failing such agreement, was not in accordance with the law of the 
country where the arbitration took place ; or 

(e) the award has not yet become binding on the parties, or has been set aside or suspended by a 

competent authority of the country in which, or under the law of which, that award was made. 

(2) Enforcement of an arbitral award may also be refused if the Court finds that— 

(a) the subject-matter of the difference is not capable of settlement by arbitration under the 

law of India; or 

(b) the enforcement of the award would be contrary to the public policy of India. 

1[Explanation 1.—For the avoidance of any doubt, it is clarified that an award is in conflict with the 

public policy of India, only if,— 

(i) the making of the award was induced or affected by fraud or corruption or was in violation of 

section 75 or section 81; or 

(ii) it is in contravention with the fundamental policy of Indian law; or 

(iii) it is in conflict with the most basic notions of morality or justice. 

Explanation 2.—For the avoidance of doubt, the test as to whether there is a contravention with the 

fundamental policy of Indian law shall not entail a review on the merits of the dispute.] 

(3) If an application for the setting aside or suspension of the award has been made to a competent 
authority referred to in clause (e) of sub-section (1) the Court may, if it considers it proper, adjourn the 
decision  on  the  enforcement  of  the  award  and  may  also,  on  the  application  of  the  party  claiming 
enforcement of the award, order the other party to give suitable security. 

49.  Enforcement  of  foreign  awards.—Where  the  Court  is  satisfied  that  the  foreign  award  is 

enforceable under this Chapter, the award shall be deemed to be a decree of that Court. 

50.  Appealable  orders.—(1) 2[Notwithstanding  anything  contained  in  any  other  law  for  the  time 

being in force, an appeal] shall lie from the order refusing to— 

(a) refer the parties to arbitration under section 45; 

(b) enforce a foreign award under section 48, 

to the court authorised by law to hear appeals from such order. 

1. Subs. by Act 3 of 2016, s. 22,for the Explanation (w.e.f. 23-10-2015). 
2. Subs. by Act 33 of 2019, s. 12, for “An appeal” (w.e.f. 30-8-2019). 

27 

 
                                                           
 
(2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this 

section shall affect or take away any right to appeal to the Supreme Court. 

51. Saving.—Nothing in this Chapter shall prejudice any rights which any person would have had of 
enforcing in India of any award or of availing himself in India of any award if this Chapter had not been 
enacted. 

52. Chapter II not to apply.—Chapter II of this Part shall not apply in relation to foreign awards to 

which this Chapter applies. 

CHAPTER II 

Geneva Convention Awards 

53. Interpretation.—In this Chapter “foreign award” means an arbitral award on differences relating 

to  matters  considered  as  commercial  under  the  law  in  force  in  India  made  after  the  28th  day  of  July,   
1924,— 

(a)  in  pursuance  of  an  agreement  for  arbitration  to  which  the  Protocol  set  forth  in  the  Second 

Schedule applies, and 

(b) between persons of whom one is subject to the jurisdiction of some one of such Powers as the 
Central Government, being satisfied that reciprocal provisions have been made, may, by notification 
in the Official Gazette, declare to be parties to the Convention set forth in the Third Schedule, and of 
whom the other is subject to the jurisdiction of some other of the Powers aforesaid, and 

(c) in one of such territories as the Central Government, being satisfied that reciprocal provisions 
have  been  made,  may,  by  like  notification,  declare  to  be  territories  to  which  the  said  Convention 
applies, 

and for the purposes of this Chapter an award shall not be deemed to be final if any proceedings for the 
purpose of contesting the validity of the award are pending in the country in which it was made. 

54.  Power  of  judicial  authority  to  refer  parties  to  arbitration.—Notwithstanding  anything 
contained  in  Part  I  or  in  the  Code  of  Civil  Procedure,  1908  (5  of  1908),  a  judicial  authority,  on  being 
seized of a dispute regarding a contract made between persons to whom section 53 applies and including 
an  arbitration  agreement,  whether  referring  to  present  or  future  differences,  which  is  valid  under  that 
section and capable of being carried into effect, shall refer the parties on the application of either of them 
or any person claiming through or under him to the decision of the arbitrators and such reference shall not 
prejudice the competence of the judicial authority in case the agreement or the arbitration cannot proceed 
or becomes inoperative. 

55.  Foreign  awards  when  binding.—Any  foreign  award  which  would  be  enforceable  under  this 
Chapter shall be treated as binding for all purposes on the persons as between whom  it was made, and 
may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal 
proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as 
including references to relying on an award. 

56.  Evidence.—(1) The party applying for the enforcement of a foreign award shall, at the time of 

application produce before the Court— 

(a) the original award or a copy thereof duly authenticated in the manner required by the law of 

the country in which it was made; 

(b) evidence proving that the award has become final; and 

(c) such evidence as may be necessary to prove that the conditions mentioned in clauses (a) and 

(c) of sub-section (1) of section57 are satisfied. 

(2) Where any document requiring to be produced under sub-section (1) is in a foreign language, the 
party  seeking  to  enforce  the  award  shall  produce  a  translation  into  English  certified  as  correct  by  a 
diplomatic  or  consular  agent  of  the  country  to  which  that  party  belongs  or  certified  as  correct  in  such 
other manner as may be sufficient according to the law in force in India. 

28 

 
1[Explanation.—In this section and in the sections following in this Chapter, “Court” means the High 
Court having original jurisdiction to decide the questions forming the subject-matter of the arbitral award 
if the same had been the subject-matter of a suit on its original civil jurisdiction and in other cases, in the 
High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.] 

57.  Conditions  for  enforcement  of  foreign  awards.—(1)  In  order  that  a  foreign  award  may  be 

enforceable under this Chapter, it shall be necessary that— 

(a) the award has been made in pursuance of a submission to arbitration which is valid under the 

law applicable thereto; 

(b) the subject-matter of the award is capable of settlement by arbitration under the law of India; 

(c) the award has been made by the arbitral tribunal provided for in the submission to arbitration 
or constituted in the manner agreed upon by the parties and in conformity with the law governing the 
arbitration procedure; 

(d) the award has become final in the country in which it has been made, in the sense that it will 
not be considered as such if it is open to opposition or appeal or if it is proved that any proceedings 
for the purpose of contesting the validity of the award are pending; 

(e) the enforcement of the award is not contrary to the public policy or the law of India. 

2[Explanation 1.—For the avoidance of any doubt, it is clarified that an award is in conflict with the 

public policy of India, only if,— 

(i) the making of the award was induced or affected by fraud or corruption or was in violation of 

section 75 or section 81; or 

(ii) it is in contravention with the fundamental policy of Indian law; or 
(iii) it is in conflict with the most basic notions of morality or justice. 

Explanation 2.—For the avoidance of doubt, the test as to whether there is a contravention with the 

fundamental policy of Indian law shall not entail a review on the merits of the dispute.] 

(2) Even if the conditions laid down in sub-section (1) are fulfilled, enforcement of the award shall be 

refused if the Court is satisfied that— 

(a) the award has been annulled in the country in which it was made; 

(b)  the  party  against  whom  it  is  sought  to  use  the  award  was  not  given  notice  of  the 
arbitration proceedings in sufficient time to enable him to present his case; or that, being under a 
legal incapacity, he was not properly represented; 

(c) the award does not deal with the differences contemplated by or falling within the terms 
of the submission to arbitration or that it contains decisions on matters beyond the scope of the 
submission to arbitration: 

Provided that  if the  award has  not  covered  all  the differences  submitted to the  arbitral  tribunal,  the 
Court may, if it thinks fit, postpone such enforcement or grant it subject to such guarantee as the Court 
may decide. 

(3)  If  the  party  against  whom  the  award  has  been  made  proves  that  under  the  law  governing  the 
arbitration procedure there  is aground,  other  than the  grounds  referred to  in  clauses (a)  and (c)  of  sub-
section (1) and clauses (b) and (c) of sub-section (2)entitling him to contest the validity of the award, the 
Court  may,  if  it  thinks  fit,  either refuse enforcement  of  the  award  or adjourn the  consideration  thereof, 
giving such party a reasonable time within which to have the award annulled by the competent tribunal. 

58.  Enforcement  of  foreign  awards.—Where  the  Court  is  satisfied  that  the  foreign  award  is 

enforceable under this Chapter, the award shall be deemed to be a decree of the Court. 

59. Appealable orders.—(1) An appeal shall lie from the order refusing— 

(a) to refer the parties to arbitration under section 54; and 

1. Subs. by Act 3 of 2016, s. 23, for the Explanation (w.e.f. 23-10-2015). 
2. Subs. by s. 24,ibid., for the Explanation (w.e.f. 23-10-2015). 

29 

 
                                                           
(b) to enforce a foreign award under section 57, 

to the court authorised by law to hear appeals from such order. 

(2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this 

section shall affect or take away any right to appeal to the Supreme Court. 

60. Saving.—Nothing in this Chapter shall prejudice any rights which any person would have had of 
enforcing in India of any award or of availing himself in India of any award if this Chapter had not been 
enacted. 

PART III 

CONCILIATION 

61. Application and scope.—(1) Save as otherwise provided by any law for the time being in force 
and unless the parties have otherwise agreed, this Part shall apply to conciliation of disputes arising out of 
legal relationship, whether contractual or not and to all proceedings relating thereto. 

(2) This Part shall not apply where by virtue of any law for the time being in force certain disputes 

may not be submitted to conciliation. 

62. Commencement of conciliation proceedings.—(1) The party initiating conciliation shall send to 
the  other  party  a  written  invitation  to  conciliate  under  this  Part,  briefly  identifying  the  subject  of  the 
dispute. 

(2) Conciliation proceedings, shall commence when the other party accepts in writing the invitation to 

conciliate. 

(3) If the other party rejects the invitation, there will be no conciliation proceedings. 

(4)  If  the  party  initiating  conciliation  does  not  receive  a  reply  within  thirty  days  from  the  date  on 
which he sends the invitation, or within such other period of time as specified in the invitation, he may 
elect to treat this as a rejection of the invitation to conciliate and if he so elects, he shall inform in writing 
the other party accordingly. 

63.Number  of  conciliators.—(1)  There  shall  be  one  conciliator  unless  the  parties  agree  that  there 

shall be two or three conciliators. 

(2) Where there is more than one conciliator, they ought, as a general rule, to act jointly. 

64.Appointment of conciliators.—(1) Subject to sub-section (2)— 

(a) in conciliation proceedings, with one conciliator, the parties may agree on the name of a sole 

conciliator; 

(b) in conciliation proceedings with two conciliators, each party may appoint one conciliator; 

(c) in conciliation proceedings with three conciliators, each party may appoint one conciliator and 

the parties may agree on the name of the third conciliator who shall act as the presiding conciliator. 

(2)  Parties  may  enlist  the  assistance  of  a  suitable  institution  or  person  in  connection  with  the 

appointment of conciliators, and in particular,— 

(a)  a  party  may  request  such  an  institution  or  person  to  recommend  the  names  of  suitable 

individuals to act as conciliator; or 

(b) the parties may agree that the appointment of one or more conciliators be made directly by 

such an institution or person: 

Provided  that  in  recommending  or  appointing  individuals  to  act  as  conciliator,  the  institution  or 
person shall have regard to such considerations as are likely to secure the appointment of an independent 
and  impartial  conciliator  and,  with  respect  to  a  sole  or  third  conciliator,  shall  take  into  account  the 
advisability of appointing a conciliator of a nationality other than the nationalities of the parties. 

65.Submission  of  statements  to  conciliator.—(1)  The  conciliator,  upon  his  appointment,  may 
request each party to submit to him a brief written statement describing the general nature of the dispute 
and the points at issue. Each party shall send a copy of such statement to the other party. 

30 

 
(2) The conciliator may request each party to submit to him a further written statement of his position 
and  the  facts  and  grounds  in  support  thereof,  supplemented  by  any  documents  and  other  evidence  that 
such  party  deems  appropriate.  The  party  shall  send  a  copy  of  such  statement,  documents  and  other 
evidence to the other party. 

(3) At any stage of the conciliation proceedings, the conciliator may request a party to submit to him 

such additional information as he deems appropriate. 

Explanation.—In this section and all the following sections of this Part, the term "conciliator" applies 

to a sole conciliator, two or three conciliators, as the case may be. 

66.Conciliator  not  bound  by  certain  enactments.—The  conciliator  is  not  bound  by  the  Code  of 

Civil Procedure, 1908 (5 of 1908)or the Indian Evidence Act, 1872 (1 of 1872). 

67.Role  of  conciliator.—(1) The conciliator shall assist the parties in an independent and impartial 

manner in their attempt to reach an amicable settlement of their dispute. 

(2)  The  conciliator  shall  be  guided  by  principles  of  objectivity,  fairness  and  justice,  giving 
consideration  to,  among  other  things,  the  rights  and  obligations  of  the  parties,  the  usages  of  the  trade 
concerned  and  the  circumstances  surrounding  the  dispute,  including  any  previous  business  practices 
between the parties. 

(3)  The  conciliator  may  conduct  the  conciliation  proceedings  in  such  a  manner  as  he  considers 
appropriate,  taking  into  account  the  circumstances  of  the  case,  the  wishes  the  parties  may  express, 
including  any  request  by  a  party  that  the  conciliator  hear  oral  statements,  and  the  need  for  a  speedy 
settlement of the dispute. 

(4) The conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement 
of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the 
reasons therefor. 

68.Administrative assistance.—In order to facilitate the conduct of the conciliation proceedings, the 
parties, or the conciliator with the consent of the parties, may arrange for administrative assistance by a 
suitable institution or person. 

69.Communication between conciliator and parties.—(1) The conciliator may invite the parties to 
meet  him  or  may  communicate  with  them  orally  or  in  writing.  He  may  meet  or  communicate  with the 
parties together or with each of them separately. 

(2) Unless the parties have agreed upon the place where meetings with the conciliator are to be held, 
such place shall be determined by the conciliator, after consultation with the parties, having regard to the 
circumstances of the conciliation proceedings. 

70.Disclosure  of  information.—When  the  conciliator  receives  factual  information  concerning  the 
dispute from a party, he shall disclose the substance of that information to the other party in order that the 
other party may have the opportunity to present any explanation which he considers appropriate: 

Provided that when a party gives any information to the conciliator subject to a specific condition that 

it be kept confidential, the conciliator shall not disclose that information to the other party. 

71.Co-operation  of  parties  with  conciliator.—The  parties  shall  in  good  faith  co-operate  with  the 
conciliator and, in particular, shall endeavour to comply with requests by the conciliator to submit written 
materials, provide evidence and attend meetings. 

72.Suggestions  by  parties for  settlement  of  dispute.—Each party may, on his own initiative or at 

the invitation of the conciliator, submit to the conciliator suggestions for the settlement of the dispute. 

73.Settlement  agreement.—(1)  When  it  appears  to  the  conciliator  that  there  exist  elements  of  a 
settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement 
and submit them to the parties for their observations. After receiving the observations of the parties, the 
conciliator may reformulate the terms of a possible settlement in the light of such observations. 

(2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written 
settlement  agreement.  If  requested  by  the  parties,  the  conciliator  may  draw  up,  or  assist  the  parties  in 
drawing up, the settlement agreement. 

31 

 
(3) When the parties sign the settlement agreement, it shall be final and binding on the parties and 

persons claiming under them respectively. 

(4) The conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of 

the parties. 

74.Status  and  effect  of  settlement  agreement.—The  settlement  agreement  shall  have  the  same 
status and effect as if it is an arbitral award on agreed terms on the substance of the dispute rendered by 
an arbitral tribunal under section 30. 

75.Confidentiality.—Notwithstanding  anything  contained  in  any  other  law  for  the  time  being  in 
force,  the  conciliator  and  the  parties  shall  keep  confidential  all  matters  relating  to  the  conciliation 
proceedings. Confidentiality shall extend also to the settlement agreement, except where its disclosure is 
necessary for purposes of implementation and enforcement. 

76.Termination of conciliation proceedings.—The conciliation proceedings shall be terminated— 

(a) by the signing of the settlement agreement by the parties, on the date of the agreement; or 

(b) by a written declaration of the conciliator, after consultation with the parties, to the effect that 

further efforts at conciliation are no longer justified, on the date of the declaration; or 

(c)  by  a  written  declaration  of  the  parties  addressed  to  the  conciliator  to  the  effect  that  the 

conciliation proceedings are terminated, on the date of the declaration; or 

(d) by a written declaration of a party to the other party and the conciliator, if appointed, to the 

effect that the conciliation proceedings are terminated, on the date of the declaration. 

77.Resort to arbitral or judicial proceedings.—The parties shall not initiate, during the conciliation 
proceedings, any arbitral or judicial proceedings in respect of a dispute that is the     subject-matter of the 
conciliation  proceedings  except  that  a  party  may  initiate  arbitral  or  judicial  proceedings  where,  in  his 
opinion, such proceedings are necessary for preserving his rights. 

78.Costs.—(1) Upon termination of the conciliation proceedings, the conciliator shall fix the costs of 

the conciliation and give written notice thereof to the parties. 

(2) For the purpose of sub-section (1), “costs” means reasonable costs relating to— 

(a)  the  fee  and  expenses  of  the  conciliator  and  witnesses  requested  by  the  conciliator  with  the 

consent of the parties; 

(b) any expert advice requested by the conciliator with the consent of the parties; 

(c) any assistance provided pursuant to clause (b) of sub-section (2) of section 64 and section 68. 

(d)  any  other  expenses  incurred  in  connection  with  the  conciliation  proceedings  and  the 

settlement agreement. 

(3)  The  costs  shall  be  borne  equally  by  the  parties  unless  the  settlement  agreement  provides  for  a 

different apportionment. All other expenses incurred by a party shall be borne by that party. 

79.Deposits.—(1) The conciliator may direct each party to deposit an equal amount as an advance for 

the costs referred to in sub-section(2) of section 78 which he expects will be incurred. 

(2)  During  the  course  of  the  conciliation  proceedings,  the  conciliator  may  direct  supplementary 

deposits in an equal amount from each party. 

(3) If the required deposits under sub-sections (1) and (2) are not paid in full by both parties within 
thirty days, the conciliator may suspend the proceedings or may make a written declaration of termination 
of the proceedings to the parties, effective on the date of that declaration. 

(4) Upon termination of the conciliation proceedings, the conciliator shall render an accounting to the 

parties of the deposits received and shall return any unexpended balance to the parties. 

80.Role of conciliator in other proceedings.—Unless otherwise agreed by the parties,— 

32 

 
(a) the conciliator shall not act as an arbitrator or as a representative or counsel of a party in any 
arbitral  or  judicial  proceeding  in  respect  of  a  dispute  that  is  the  subject  of  the  conciliation 
proceedings; 

(b)  the  conciliator  shall  not  be  presented  by  the  parties  as  a  witness  in  any  arbitral  or  judicial 

proceedings. 

81.Admissibility  of  evidence  in  other  proceedings.—The parties shall not rely on or introduce as 
evidence in arbitral or judicial proceedings, whether or not such proceedings relate to the dispute that is 
the subject of the conciliation proceedings,— 

(a) views expressed or suggestions made by the other party in respect of a possible settlement of 

the dispute; 

(b) admissions made by the other party in the course of the conciliation proceedings; 

(c) proposals made by the conciliator; 

(d) the fact that the other party had indicated his willingness  to accept a proposal for settlement 

made by the conciliator. 

PART IV 

SUPPLEMENTARY PROVISIONS 

82. Power of High Court to make rules.—The High Court may make rules consistent with this Act 

as to all proceedings before the  Court under this Act. 

83. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act, 
the  Central  Government  may,  by  order  published  in  the  Official  Gazette,  make  such  provisions,  not 
inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the 
difficulty: 

Provided that no such order shall made be after the expiry of a period of two years from the date of 

commencement of this Act. 

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each 

Houses of Parliament. 

84. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules for carrying out the provisions of this Act. 

(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be, after 
it is made before each House of Parliament while it is in session, for a total period of thirty days which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 
session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule. 

85. Repeal and savings.—(1) The Arbitration (Protocol and Convention) Act, 1937 (6 of 1937), the 

Arbitration  Act,  1940  (10  of  1940)  and  the  Foreign  Awards  (Recognition  and  Enforcement)                         
Act,1961 (45 of 1961) are hereby repealed. 

(2) Notwithstanding such repeal,— 

(a)  the  provisions  of  the  said  enactments  shall  apply  in  relation  to  arbitral  proceedings  which 
commenced before this Act came into force unless otherwise agreed by the parties but this Act shall 
apply in relation to arbitral proceedings which commenced on or after this Act comes into force; 

(b)  all  rules  made  and  notifications  published,  under  the  said  enactments  shall, to  the  extent  to 
which they are not repugnant to this Act, be deemed respectively to have been made or issued under 
this Act.  

33 

 
86. Repeal and saving.—(1) The Arbitration and Conciliation (Third) Ordinance, 1996 (Ord.27 of 

1996) is hereby repealed. 

(2) Notwithstanding such repeal, any order, rule, notification or scheme made or anything done or  
any  action  taken  in  pursuance  of  any  provision  of  the  said  Ordinance  shall  be  deemed  to  have  been 
made, done or taken under the corresponding provisions of this Act. 

1[87. Effect of arbitral and related court proceedings commenced.—Unless the parties otherwise 
agree,  the  amendments  made  to  this  Act  by  the  Arbitration  and  Conciliation  (Amendment)  Act,  2015 
shall— 

(a) not apply to— 

(i) arbitral proceedings commenced before the commencement of the Arbitration and Conciliation 

(Amendment) Act, 2015 (23rd October, 2015); 

(ii)  court  proceedings  arising  out  of  or  in  relation  to  such  arbitral  proceedings  irrespective  of 
whether  such  court  proceedings  are  commenced  prior  to  or  after  the  commencement  of  the 
Arbitration and Conciliation (Amendment) Act, 2015; 

(b) apply only to arbitral proceedings commenced on or after the commencement of the Arbitration 
and Conciliation (Amendment) Act, 2015 and to court proceedings arising out of or in relation to such 
arbitral proceedings.] 

1. Ins. by Act 33 of 2019, s. 13 (w.e.f. 30-8-2019). 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
THE FIRST SCHEDULE 

(See section 44) 

CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS 

ARTICLE 1 

1.This  Convention  shall  apply  to  the  recognition  and  enforcement  of  arbitral  awards  made  in  the 
territory of a State other than the State where the recognition and enforcement of such awards are sought, 
and arising out of differences between persons, whether physical or legal. It shall also apply to arbitral 
awards  not  considered  as  domestic  awards  in  the  State  where  their  recognition  and  enforcement  are 
sought. 

2.The  term  “arbitral  awards”  shall  include  not  only  awards  made  by  arbitrators  appointed  for  each 

case but also those made by permanent arbitral bodies to which the parties have submitted. 

3.When  signing,  ratifying  or  acceding  to  this  Convention,  or  notifying  extension  under  article  X 
hereof,  any  State  may  on  the  basis  of  reciprocity  declare  that  it  will  apply  the  Convention  to  the 
recognition  and  enforcement  of  awards  made  only  in  the  territory  of  another  Contracting  State.  It  may 
also  declare  that  it  will  apply  the  Convention  only  to  differences  arising  out  of  legal  relationships, 
whether  contractual  or  not,  which  are  considered  as  commercial  under  the  national  law  of  the  State 
making such declaration. 

ARTICLE II 

1.Each Contracting State shall recognise an agreement in writing under which the parties undertake to 
submit to arbitration all or any differences which have arisen or which may arise between them in respect 
of  defined  legal  relationship,  whether  contractual  or  not,  concerning  a  subject-matter  capable  of 
settlement by arbitration. 

2.The  term  “agreement  in  writing”  shall  include  an  arbitral  clause  in  a  contract  or  an  arbitration 

agreement, signed by the parties or contained in an exchange of letters or telegrams. 

3.The court of a Contracting State, when seized of an action in a matter in respect of which the parties 
have made an agreement within the meaning of this article, shall, at the request of one of the parties, refer 
the parties to arbitration, unless in finds that the said agreement is null and void, inoperative of incapable 
of being performed. 

ARTICLE III 

Each  Contracting  State  shall  recognize  arbitral  awards  as  binding  and  enforce  them  in  accordance 
with the rules of procedure of the territory where the award is relied upon, under the conditions laid down 
in the following articles. There shall not be imposed substantially more onerous conditions or higher fees 
or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are 
imposed on the recognition or enforcement of domestic arbitral awards. 

ARTICLE IV 

1.To  obtain  the  recognition  and enforcement  mentioned  in  the  preceding  article,  the  party  applying 

for recognition and enforcement shall, at the time of the application, supply— 

(a) the duly authenticated original award or a duly certified copy thereof; 

(b) the original agreement referred to in article II or a duly certified copy thereof. 

2.If the said award or agreement is not made in an official language of the country in which the award 
is relied upon, the party applying for recognition and enforcement of the award shall produce a translation 
of these documents into such language. The translation shall be certified by an official or sworn translator 
or by a diplomatic or consular agent. 

35 

 
 
 
ARTICLE V 

1.Recognition and enforcement of the award may be refused, at the request of the party against whom 
it  is  invoked,  only  if  that  party  furnishes  to  the  competent  authority  where  the  recognition  and 
enforcement is sought, proof that— 

(a) the parties to the agreement referred to in article II were, under the law applicable to  them, 
under  some  incapacity,  or  the  said  agreement  is  not  valid  under  the  law  to  which  the  parties  have 
subjected  it  or,  failing  any  indication  thereon,  under  the  law  of  the  country  where  the  award  was 
made; or 

(b) the party against whom the award is invoked was not given proper notice of the appointment 

of the arbitrator or of the arbitration proceedings or was otherwise unable to present his case; or 

(c) the award deals with a difference not contemplated by or not falling within the terms of the 
submission to arbitration, or it contains decisions on matters beyond the scope of the submission to 
arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from 
those  not  so  submitted,  that  part  of  the  award  which  contains  decisions  on  matters  submitted  to 
arbitration may be recognised and enforced; or 

(d) the composition of the arbitral authority or the arbitral procedure was not in accordance with 
the agreement of the parties, or, failing such agreement, was not  in accordance with the law of the 
country where the arbitration took place; or 

(e) the award has not yet become binding on the parties, or has been set aside or suspended by a 

competent authority of the country in which, or under the law of which, that award was made. 
2.Recognition and enforcement of an arbitral award may also be refused if the competent authority in 

the country where recognition and enforcement is sought finds that— 

(a) the subject-matter of the difference is not capable of settlement by arbitration under the law of 

that country; or 

(b)  the  recognition  or  enforcement  of  the  award  would  be  contrary  to  the  public  policy  of  that 

country. 

ARTICLE VI 

If  an  application  for  the  setting  aside  or  suspension  of  the  award  has  been  made  to  a  competent 
authority referred to in article V(1)(e), the authority before which the award is sought to be relied upon 
may, if it considers it proper, adjourn the decision on the enforcement of the award and may also, on the 
application of the party claiming enforcement of the award, order the other party to give suitable security. 
ARTICLE VII 

1.The  provisions  of  the  present  Convention  shall  not  affect  the  validity  of  multilateral  or  bilateral 
agreements concerning the recognition and enforcement of arbitral awards entered into by the Contracting 
States nor deprive any interested party of any right the may have to avail himself of an arbitral award in 
the manner and to the extent allowed by the law or the treaties of the country where such award is sought 
to be relied upon. 

2.The Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Convention on the Execution 
of  Foreign  Arbitral  Awards  of1927  shall  cease  to  have  effect  between  Contracting  States  on  their 
becoming bound and to the extent that they become bound by this Convention. 

ARTICLE VIII 

1.This Convention shall be open until 31st December, 1958 for signature on behalf of any Member of 
the United Nations and also on behalf of any other State which is or hereafter becomes member of any 
specialised agency of the United Nations, or which is or hereafter becomes a party to the Statute of the 
International Court of Justice, or any other State to which an invitation has been addressed by the General 
Assembly of the United Nations. 

2.This  Convention  shall  be  ratified  and  the  instrument  of  ratification  shall  be  deposited  with  the 

Secretary-General of the United Nations. 

1.This Convention shall be open for accession to all States referred to in article VIII. 

2.Accession shall be effected by the deposit of an instrument of accession with the Secretary-General 

of the United Nations. 

ARTICLE 1X 

36 

 
ARTICLE X 

1.Any State may, at the time of signature, ratification or accession, declare that this Convention shall 
extend  to  all  or  any  of  the  territories  for  the  international  relations  of  which  it  is  responsible.  Such  a 
declaration shall take effect when the Convention enters into force for the State concerned. 

2.At any time thereafter any such extension shall be made by notification addressed to the Secretary-
General of the United Nations and shall take effect as from the ninetieth day after the day of receipt by the 
Secretary-General of the United Nations of this notification, or as from the date of entry into force of the 
Convention for the State concerned, whichever is the later. 

3.With respect to those territories to which this Convention is not extended at the time of signature, 
ratification or accession, each State concerned shall consider the possibility of taking the necessary steps 
in  order  to  extend  the  application  of  this  Convention  to  such  territories,  subject,  where  necessary  for 
constitutional reasons, to the consent of the Governments of such territories. 

ARTICLE XI 

In the case of a federal or non-unitary State, the following provisions shall apply:— 

(a) with respect of those articles of this Convention that come within the legislative jurisdiction of 
the  federal  authority,  the  obligations  of  the  federal  Government  shall  to  this  extent  be  the  same  as 
those of Contracting States which are not federal States; 

(b) with respect to those articles of this Convention that come within the legislative jurisdiction of 
constituent States or provinces which are not, under the constitutional system of the federation, bound 
to  take  legislative  action,  the  federal  Government  shall  bring  such  articles  with  a  favourable 
recommendation to the notice of the appropriate authorities of constituent States or provinces at the 
earliest possible moment; 

(c)  a  federal  State  Party  to  this  Convention  shall,  at  the  request  of  any  other  Contracting  State 
transmitted through the Secretary-General of the United Nations, supply a statement of the law and 
practice  of  the  federation  and  its  constituent  units  in  regard  to  any  particular  provision  of  this 
Convention,  showing  the  extent  to  which  effect  has  been  given  to  that  provision  by  legislative  or 
other action. 

ARTICLE XII 

1.This Convention shall come into force on the ninetieth day following the date of deposit of the third 

instrument of ratification or accession. 

2.For each State ratifying or acceding to this Convention after the deposit of the third instrument of 
ratification or accession, this Convention shall enter into force on the ninetieth day after deposit by such 
State of its instrument of ratification or accession. 

ARTICLE XIII 

1.Any  Contracting  State  may  denounce  this  Convention  by  a  written  notification  to  the  Secretary-
General  of  the  United  Nations.  Denunciation  shall  take  effect  one  year  after  the  date  of  receipt  of  the 
notification by the Secretary-General. 

2.Any State which has made a declaration or notification under article X may, at any time thereafter, 
by notification to the Secretary-General of the United Nations, declare that this Convention shall cease to 
extend to the territory concerned one year after the date of the receipt of the notification by the Secretary-
General. 

3.This Convention shall continue to be applicable to arbitral awards in respect of which recognition or 

enforcement proceedings have been instituted before the denunciation takes effect. 

A  Contracting  State  shall  not  be  entitled  to  avail  itself  of  the  present  Convention  against  other 

Contracting States except to the extent that it is itself bound to apply the Convention. 

ARTICLE XIV 

37 

 
 
 
The Secretary-General of the United Nations shall notify the States contemplated in article VIII of the 

following:— 

ARTICLE XV 

(a) signatures and ratifications in accordance with article VIII; 

(b) accessions in accordance with article IX; 

(c) declarations and notifications under articles I, X and XI; 

(d) the date upon which this Convention enters into force in accordance with article XII; 

(e) denunciations and notifications in accordance with article XIII. 

ARTICLE XVI 

1.This Convention, of which the Chinese, English, French, Russian and Spanish texts shall be equally 

authentic, shall be deposited in the archives of the United Nations. 

2.The Secretary-General of the United Nations shall transmit a certified copy of this Convention to 

the States contemplated in article XIII. 

38 

 
 
 
THE SECOND SCHEDULE 

(See section 53) 

PROTOCOL ON ARBITRATION CLAUSES 

The  undersigned,  being  duly  authorised,  declare  that  they  accept,  on  behalf  of  the  countries  which 

they represent, the following provisions:— 

1.Each of the Contracting States recognises the validity of an agreement whether relating to existing 
or future differences between parties subject respectively to the jurisdiction of different Contracting States 
by which the parties to a contract agree to submit to arbitration all or any differences that may arise in 
connection with such contract relating to commercial matters or to any other matter capable of settlement 
by arbitration, whether or not the arbitration is to take place in a country to whose jurisdiction none of the 
parties is subject. 

Each Contracting State reserves the right to limit the obligation mentioned above to contracts which 
are  considered  as  commercial  under  its  national  law  .Any  Contracting  State  which  avails  itself  of  this 
right will notify the Secretary-General of the League of Nations in order that the other Contracting States 
may be so informed. 

2.The arbitral procedure, including the constitution of the Arbitral Tribunal, shall be governed by the 

will of the parties and by the law of the country in whose territory the arbitration takes place. 

The Contracting States agree to facilitate all steps in the procedure which require to be taken in their 
own territories, in accordance with the provisions of their law governing arbitral procedure applicable to 
existing differences. 

3.Each Contracting State undertakes to ensure the execution by its authorities and in accordance with 
the provisions of its national laws of arbitral awards made in its own territory under the preceding articles. 

4.The  Tribunals  of  the  Contracting  Parties,  on  being  seized  of  a  dispute  regarding  a  contract  made 
between persons to whom Article I applies and including an Arbitration Agreement whether referring to 
present or future differences which is valid in virtue of the said article and capable of being carried into 
effect, shall refer the parties on the application of either of them to the decision of the Arbitrators. 

Such reference shall not prejudice the competence of the judicial tribunals in case the agreement or 

the arbitration cannot proceed or becomes inoperative. 

5.The  present  Protocol,  which  shall  remain  open  for  signature  by  all  States,  shall  be  ratified.  The 
ratification shall be deposited as soon as possible with the Secretary-General of the League of Nations, 
who shall notify such deposit to all the Signatory States. 

6.The  present  Protocol  will  come  into  force  as  soon  as  two  ratifications  have  been  deposited. 
Thereafter it will take effect, in the case of each Contracting State, one month after the notification by the 
Secretary-General of the deposit of its ratification. 

7.The  present  Protocol  may  be  denounced  by  any  Contracting  State  on  giving  one  year's  notice. 
Denunciation shall be effected by a notification addressed to the Secretary-General of the League, who 
will immediately transmit copies of such notification to all the other Signatory States and inform them of 
the date on which it was received. The denunciation shall take effect one year after the date on which it 
was notified to the Secretary-General, and shall operate only in respect of the notifying State. 

8.The Contracting States may declare that their acceptance of the present Protocol does not include 
any  or  all  of  the  under  mentioned  territories:  that  is  to  say,  their  colonies,  overseas  possessions  or 
territories, protectorates or the territories over which they exercise a mandate. 

The  said  States  may  subsequently  adhere  separately  on  behalf  of  any  territory  thus  excluded.  The 
Secretary-General of the League of Nations shall be informed as soon as possible of such adhesions. He 
shall notify such adhesions to all Signatory States. They will take effect one month after the notification 
by the Secretary-General to all Signatory States. 

The Contracting States may also denounce the Protocol separately on behalf of any of the territories 

referred to above. Article 7applies to such denunciation. 

39 

 
THE THIRD SCHEDULE 

(See section 53) 

CONVENTION ON THE EXECUTION OF FOREIGN ARBITRAL AWARDS 

ARTICLE  1.—(1)  In  the  territories  of  any  High  Contracting  Party  to  which the present  Convention 
applies,  an  arbitral  award  made  in  pursuance  of  an  agreement  whether  relating  to  existing  or  future 
differences  (hereinafter  called  “a  submission  to  arbitration”)  covered  by  the  Protocol  on  Arbitration 
Clauses opened at Geneva on September 24th,1923, shall be recognised as binding and shall be enforced 
in accordance with the rules of the procedure of the territory where the award is relied upon, provided that 
the said award has been made in a territory of one of the High Contracting Parties to which the present 
Convention  applies  and  between  persons  who  are  subject  to  the  jurisdiction  of  one  of  the  High 
Contracting Parties. 

(2) To obtain such recognition or enforcement, it shall, further, be necessary:— 

(a) that the award has been made in pursuance of a submission to arbitration which is valid under 

the law applicable thereto; 

(b) that the subject-matter of the award is capable of settlement by arbitration under the law of the 

country in which the award is sought to be relied upon; 

(c)  that  the  award  has  been  made  by  the  Arbitral  Tribunal  provided  for  in  the  submission  to 
arbitration  or  constituted  in  the  manner  agreed  upon  by  the  parties  and  in  conformity  with  the  law 
governing the arbitration procedure; 

(d) that the award has become final in the country in which it has been made, in the sense that it 
will  not  be  considered  as  such  if  it  is  open  to  opposition,  appeal  or  pourvoi  en  cassation(in  the 
countries where such forms of procedure exist) or if it is proved that any proceedings for the purpose 
of contesting the validity of the award are pending; 

(e) that the recognition or enforcement of the award is not contrary to the public policy or to the 

principles of the law of the country in which it is sought to be relied upon. 

ARTICLE 2.—Even if the conditions laid down in Article 1 hereof are fulfilled, recognition and 

enforcement of the award shall be refused if the Court is satisfied:— 

(a) that the award has been annulled in the country in which it was made; 

(b)  that  the  party  against  whom  it  is  sought  to  use  the  award  was  not  given  notice  of  the 
arbitration proceedings in sufficient time to enable him to present his case; or that, being under a legal 
incapacity, he was not properly represented; 

(c) that the award does not deal with the differences contemplated by or falling within the terms 
of  the  submission  to  arbitration  or  that  it  contains  decisions  on  matters  beyond  the  scope  of  the 
submission to arbitration. 

If  the  award  has  not  covered  all  the  questions  submitted  to  the  arbitral  tribunal,  the  competent 
authority of the country where recognition or enforcement of the award is sought can, if it thinks fit, 
postpone such recognition or enforcement or grant it subject to such guarantee as that authority may 
decide. 

ARTICLE  3.—If  the  party  against  whom  the  award  has  been  made  proves  that,  under  the  law 
governing the arbitration procedure, there is aground, other than the grounds referred to in Article 1(a) 
and (c), and Article 2(b) and (c), entitling him to contest the validity of the award in a Court of Law, the 
Court  may,  if  it  thinks  fit,  either  refuse  recognition  or  enforcement  of  the  award  or  adjourn  the 
consideration thereof, giving such party a reasonable time within which to have the award annulled by the 
competent tribunal. 

40 

 
 
 
ARTICLE  4.—The  party  relying  upon  an  award  or  claiming  its  enforcement  must  supply,  in 

particular:— 

(1) the original award or a copy thereof duly authenticated, according to the requirements of the 

law of the country in which it was made; 

(2) documentary or other evidence to prove that the award has become final, in the sense defined 

in Article 1(d), in the country in which it was made; 

(3)  when  necessary,  documentary  or  other  evidence  to  prove  that  the  conditions  laid  down  in 

Article 1, paragraph (1) and paragraph (2) (a) and (c), have been fulfilled. 

A  translation  of  the  award  and  of  the  other  documents  mentioned  in  this  Article  into  the  official 
language of the country where the award is sought to be relied upon may be demanded. Such translations 
must be certified correct by a diplomatic or consular agent of the country to which the party who seeks to 
rely upon the award belongs or by a sworn translator of the country where the award is sought to be relied 
upon. 

ARTICLE 5.—The provisions of the above Articles shall not deprive any interested party of the right 
of availing himself of an arbitral award in the manner and to the extent allowed by the law or the treaties 
of the country where such award is sought to be relied upon. 

ARTICLE  6.—The  present  Convention  applies  only  to  arbitral  awards  made  after  the  coming  into 

force of the Protocol on Arbitration Clauses opened at Geneva on September 24th, 1923. 

ARTICLE 7.—The present Convention, which will remain open to the signature of all the signatories 

of the Protocol of 1923 on Arbitration Clauses, shall have been ratified. 

It may be ratified only on behalf of those Members of the League of Nations and Non-Member States 

on whose behalf the Protocol of 1923 shall have been ratified. 

Ratification  shall  be  deposited  as  soon  as  possible  with  the  Secretary-General  of  the  League  of 

Nations, who will notify such deposit to all the signatories. 

ARTICLE  8.—The  present  Convention  shall  come  into  force  three  months  after  it  shall  have  been 
ratified on behalf of two High Contracting Parties. Thereafter, it shall take effect, in the case of each High 
Contracting  Party,  three  months  after  the  deposit  of  the  ratification  on  its  behalf  with  the  Secretary-
General of the League of Nations. 

ARTICLE 9.—The present Convention may be denounced on behalf of any Member of the League or 
Non-Member State. Denunciation shall be notified in writing to the Secretary-General of the League of 
Nations, who will immediately send a copy thereof, certified to be inconformity with the notifications, to 
all the other Contracting Parties, at the same time informing them of the date on which he received it. 

The denunciation shall come into force only in respect of the High Contracting Party which shall have 
notified it and one year after such notification shall have reached the Secretary-General of the League of 
Nations. 

The denunciation of the Protocol on Arbitration Clauses shall entail, ipso facto, the denunciation of 

the present Convention. 

ARTICLE  10.—The  present  Convention  does  not  apply  to  the  colonies,  protectorates  or  territories 

under suzerainty or mandate of any High Contracting Party unless they are specially mentioned. 

The  application  of  this  Convention  to  one  or  more  of  such  colonies,  protectorates  or  territories  to 
which  the  Protocol  on  Arbitration  Clauses  opened  at Geneva  on  September  24th,  1923,  applies,  can be 
effected  at  any  time  by  means  of  a  declaration  addressed  to  the  Secretary-General  of  the  League  of 
Nations by one of the High Contracting Parties. 

Such declaration shall take effect three months after the deposit thereof. 

The High Contracting Parties can at any time denounce the Convention for all or any of the colonies, 

protectorates or territories referred to above. Article 9 hereof applied to such denunciation. 

ARTICLE  11.—A  certified  copy  of  the  present  Convention  shall  be  transmitted  by  the  Secretary-
General of the League of Nations of every Member of the League of Nations and to every Non-Member 
State which signs the same. 

41 

 
1[THE FOURTH SCHEDULE 
[See section 11(14)] 

Sum in dispute 

Up to Rs. 5,00,000 

Model fee 

Rs. 45,000 

Above Rs. 5,00,000 and up to Rs. 20,00,000 

Rs. 45,000 plus 3.5 per cent. of the claim amount 
over and above Rs. 5,00,000 

Above Rs. 20,00,000 and up to Rs. 1,00,00,000 

Rs. 97,500 plus 3 per cent. of the claim amount 
over and above Rs. 20,00,000 

Above Rs. 1,00,00,000 and up to  
Rs. 10,00,00,000 

Rs. 3,37,500 plus 1 per cent. of the claim amount 
over and above Rs. 1,00,00,000 

Above Rs. 10,00,00,000 and up to   
Rs. 20,00,00,000 

Rs. 12,37,500 plus 0.75 per cent. of the claim 
amount over and above Rs. 1,00,00,000 

Above Rs. 20,00,00,000 

Rs.  19,87,500  plus  0.5  per  cent.  of  the  claim 
amount over and above Rs. 20,00,00,000 with a 
ceiling of Rs. 30,00,000 

Note:—In the event, the arbitral tribunal is a sole arbitrator, he shall be entitled to an additional amount of 
twenty-five per cent. on the fee payable as per the table set out above. 

1. Ins. by Act 3 of 2016, s. 25 (w.e.f.23-10-2015). 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
THE FIFTH SCHEDULE 

[See section 12(1)(b)] 

The  following  grounds  give  rise  to  justifiable  doubts  as  to  the  independence  or  impartiality  of 

arbitrators: 

Arbitrator’s relationship with the parties or counsel 

1.  The  arbitrator  is  an  employee,  consultant,  advisor  or  has  any  other  past  or  present  business 

relationship with a party. 

2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. 

3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties. 

4. The arbitrator is a lawyer in the same law firm which is representing one of the parties. 

5.  The  arbitrator  is  a  manager,  director  or  part  of  the  management,  or  has  a  similar  controlling 
influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in 
the arbitration. 

6.  The  arbitrator’s  law  firm  had  a  previous  but  terminated  involvement  in  the  case  without  the 

arbitrator being involved himself or herself. 

7. The arbitrator’s law firm currently has a significant commercial relationship with one of the parties 

or an affiliate of one of the parties. 

8.  The  arbitrator  regularly  advises  the  appointing  party  or  an  affiliate  of  the  appointing  party  even 

though neither the arbitrator nor his or her firm derives a significant financial income therefrom. 

9. The arbitrator has a close family relationship with one of the parties and in the case of companies 

with the persons in the management and controlling the company. 

10. A close family member of the arbitrator has a significant financial interest in one of the parties or 

an affiliate of one of the parties. 

11.The arbitrator is a legal representative of an entity that is a party in the arbitration. 

12.  The  arbitrator  is  a  manager,  director  or  part  of  the  management,  or  has  a  similar  controlling 

influence in one of the parties. 

13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case. 

14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the 

arbitrator or his or her firm derives a significant financial income therefrom. 

Relationship of the arbitrator to the dispute 

15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an 

affiliate of one of the parties. 

16. The arbitrator has previous involvement in the case. 

Arbitrator’s direct or indirect interest in the dispute 

17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one 

of the parties that is privately held. 

18. A close family member of the arbitrator has a significant financial interest in the outcome of the 

dispute. 

19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party 

who may be liable to recourse on the part of the unsuccessful party in the dispute. 

43 

 
 
 
 
Previous services for one of the parties or other involvement in the case 

20. The arbitrator has within the past three years served as counsel for one of the parties or an affiliate 
of one of the parties or has previously advised or been consulted by the party or an affiliate of the party 
making the appointment in an unrelated matter, but the arbitrator and the party or the affiliate of the party 
have no ongoing relationship. 

21. The arbitrator has within the past three years served as counsel against one of the parties or an 

affiliate of one of the parties in an unrelated matter. 

22.  The  arbitrator  has  within  the  past  three  years  been  appointed  as  arbitrator  on  two  or  more 

occasions by one of the parties or an affiliate of one of the parties. 

23. The arbitrator’s law firm has within the past three years acted for one of the parties or an affiliate 

of one of the parties in an unrelated matter without the involvement of the arbitrator. 

24. The arbitrator currently serves, or has served within the past three years, as arbitrator in another 

arbitration on a related issue involving one of the parties or an affiliate of one of the parties. 

Relationship between an arbitrator and another arbitrator or counsel 

25. The arbitrator and another arbitrator are lawyers in the same law firm. 

26. The arbitrator was within the past three years a partner of, or otherwise affiliated with, another 

arbitrator or any of the counsel in the same arbitration. 

27. A lawyer in the arbitrator’s law firm is an arbitrator in another dispute involving the same party or 

parties or an affiliate of one of the parties. 

28. A close family member of the arbitrator is a partner or employee of the law firmre presenting one 

of the parties, but is not assisting with the dispute. 

29. The arbitrator has within the past three years received more than three appointments by the same 

counsel or the same law firm. 

Relationship between arbitrator and party and others involved in the arbitration 

30. The arbitrator’s law firm is currently acting adverse to one of the parties or an affiliate of one of 

the parties. 

31. The arbitrator had been associated within the past three years with a party or an affiliate of one of 

the parties in a professional capacity, such as a former employee or partner. 

Other circumstances 

32.  The  arbitrator  holds  shares,  either  directly  or  indirectly,  which  by  reason  of  number  or 
denomination constitute a material holding in one of the parties or an affiliate of one of the parties that is 
publicly listed. 

33.  The  arbitrator  holds  a  position  in  an  arbitration  institution  with  appointing  authority  over  the 

dispute. 

34.  The  arbitrator  is  a  manager,  director  or  part  of  the  management,  or  has  a  similar  controlling 
influence, in an affiliate of one of the parties, where the affiliate is not directly involved in the matters in 
dispute in the arbitration. 

Explanation  1.—The  term  “close  family  member”  refers  to  a  spouse,  sibling,  child,  parent  or  life 

partner. 

Explanation 2.—The term “affiliate” encompasses all companies in one group of companies including 

the parent company. 

Explanation 3.—For the removal of doubts, it is clarified that it may be the practice in certain specific 
kinds  of  arbitration,  such  as  maritime  or  commodities  arbitration,  to  draw  arbitrators  from  a  small, 
specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same 
arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out 
above. 

44 

 
THE SIXTH SCHEDULE 
[See section 12(1)(b)] 

NAME: 

CONTACT DETAILS: 

PRIOR EXPERIENCE (INCLUDING EXPERIENCE WITH ARBITRATIONS): 

NUMBER OF ONGOING ARBITRATIONS: 

CIRCUMSTANCES  DISCLOSING  ANY  PAST  OR  PRESENT  RELATIONSHIP  WITH 
ORINTEREST  IN  ANY  OF  THE  PARTIES  OR  IN  RELATION  TO  THE  SUBJECT-MATTER 
INDISPUTE, WHETHER FINANCIAL, BUSINESS, PROFESSIONAL OR OTHER KIND,WHICH IS 
LIKELY  TO  GIVE  RISE  TO  JUSTIFIABLE  DOUBTS  AS  TO  YOURINDEPENDENCE  OR 
IMPARTIALITY (LIST OUT): 

CIRCUMSTANCES  WHICH  ARE  LIKELY  TO  AFFECT  YOUR  ABILITY  TO  DEVOTE 
SUFFICIENT TIME TO THE ARBITRATION AND IN PARTICULAR YOUR ABILITY TO FINISH 
THE ENTIRE ARBITRATION WITHIN TWELVE MONTHS (LIST OUT): 

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THE SEVENTH SCHEDULE 

[See section 12(5)] 

Arbitrator’s relationship with the parties or counsel 

1.  The  arbitrator  is  an  employee,  consultant,  advisor  or  has  any  other  past  or  present  business 

relationship with a party. 

2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. 

3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties. 

4. The arbitrator is a lawyer in the same law firm which is representing one of the parties. 

5.  The  arbitrator  is  a  manager,  director  or  part  of  the  management,  or  has  a  similar  controlling 
influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in 
the arbitration. 

6.  The  arbitrator’s  law  firm  had  a  previous  but  terminated  involvement  in  the  case  without  the 

arbitrator being involved himself or herself. 

7. The arbitrator’s law firm currently has a significant commercial relationship with one of the parties 

or an affiliate of one of the parties. 

8.  The  arbitrator  regularly  advises  the  appointing  party  or  an  affiliate  of  the  appointing  party  even 

though neither the arbitrator nor his or her firm derives a significant financial income therefrom. 

9. The arbitrator has a close family relationship with one of the parties and in the case of companies 

with the persons in the management and controlling the company. 

10. A close family member of the arbitrator has a significant financial interest in one of the parties or 

an affiliate of one of the parties. 

11. The arbitrator is a legal representative of an entity that is a party in the arbitration. 
12.  The  arbitrator  is  a  manager,  director  or  part  of  the  management,  or  has  a  similar  controlling 

influence in one of the parties. 

13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case. 

14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the 

arbitrator or his or her firm derives a significant financial income therefrom. 

Relationship of the arbitrator to the dispute 

15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an 

affiliate of one of the parties. 

16. The arbitrator has previous involvement in the case. 

Arbitrator’s direct or indirect interest in the dispute 

17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one 

of the parties that is privately held. 

18. A close family member of the arbitrator has a significant financial interest in the outcome of the 

dispute. 

19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party 

who may be liable to recourse on the part of the unsuccessful party in the dispute. 

Explanation  1.—The  term  “close  family  member”  refers  to  a  spouse,  sibling,  child,  parent  or  life 

partner. 

Explanation 2.—The term “affiliate” encompasses all companies in one group of companies including 

the parent company. 

Explanation 3.—For the removal of doubts, it is clarified that it may be the practice in certain specific 
kinds  of  arbitration,  such  as  maritime  or  commodities  arbitration,  to  draw  arbitrators  from  a  small, 
specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same 
arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out 
above.] 

46 

 
 
APPENDIX 

 EXTRACTS FROM THE ARBITRATION AND CONCILIATION (AMENDMENT) ACT, 2015 

* 

* 

(3 OF 2016) 

* 

* 

* 

1. Short title and commencement.—(1) This Act may be called the Arbitration and Conciliation 

(Amendment) Act, 2015. 

(2) It shall be deemed to have come into force on the 23rd October, 2015. 

*   

* 

* 

* 

* 

26. Act not to apply to pending arbitral proceedings.—Nothing contained in this Act shall apply to 
the arbitral proceedings commenced, in accordance with the provisions of section 21 of the principal Act, 
before  the  commencement  of  this  Act  unless  the  parties  otherwise  agree  but  this  Act  shall  apply  in 
relation to arbitral proceedings commenced on or after the date of commencement of this Act. 

27.  Repeal  and  savings.—(1)  The  Arbitration  and  Conciliation  (Amendment)  Ordinance,                   

2015 (Ord. 9 of 2015), is hereby repealed. 

(2)  Notwithstanding  such  repeal,  anything  done  or  any  action  taken  under  the  principal  Act,  as 
amended  by  the  said  Ordinance,  shall  be  deemed  to  have  been  done  or  taken  under  the  corresponding 
provisions of the principal Act, as amended by this Act. 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
